Answer to Question #109672 in Macroeconomics for Nosipho

Question

Equilibrium level of income is that at which

Answer 1

total expected real expenses are equal to total real income.

In a closed farm without a government sector, the equilibrium level of national income and production (Y) is equal to the sum of the desired or planned consumption flow and the desired or planned investment costs (I).

The level of national income at which the total number of goods and services produced in the country equals the total costs of their production