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In a closed economy, what are the primary components affecting equilibrium income determination?

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Single Answer MCQ

Q-00089117

C and G only

C, I, and G

C and I only

C, I, T, and G

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In a two-sector model, aggregate demand (AD) is defined as the sum of which two components?

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What does the variable 'Y' represent in the equation Y = C + I + cY?

Q3.

In the two-sector model, the term 'A' in the equation Y = A + cY represents what?

Q4.

If actual output (Y) exceeds planned aggregate demand (C + I), what happens in the economy?