Question

To arrive at the value of equilibrium level of income, there must exist an equality between ex-ante _____ and ex-ante _____. 

(i) Aggregate Demand, Aggregate Supply

(ii) Aggregate Demand, Savings

(iii) Aggregate Demand, Investment

(iv) Savings, Investment

Options:

(A) (i) and (ii)

(B) (i) and (iv)

(C) (ii) and (iii)

(D) (iii) and (iv)

Answer 1

Correct option is: (C) (ii) and (iii)