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What equation represents the equilibrium condition in a simple two-sector economy?

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Single Answer MCQ

Q-00089097

Y = C + I

Y = C + I + G

Y = C + I + T

Y = C - I

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Q1.

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

Q2.

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?