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Why agreegate supply is 45 degee

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Why agreegate supply is 45 degee

Posted by Roshni Kumari 6 years, 3 months ago

CBSE > Class 12 > Economics

3 answers

Harsh Panchal 6 years, 3 months ago

Because at this line AS is equal to Y and also there is direct relation between AD and AS

Ayush Kumar 6 years, 3 months ago

It is a ideal reference which shows a balance between consumption and income i.e..,(C&Y), that's why it is also known by the name (Refrence Line) and it is mandatory to go through this line. It is of 45 degree because a graph initially shows 90 degree, but to provide balance between consumption and income it tends to 45 degree and also AS lies on this line.(AS=Y)

Rahul Sharma 6 years, 3 months ago

It is also called line of reference.it indicates the equality between consumption and income. Thanks to ask

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