Question : According to this approach, the equilibrium level of income in an economy is determined where aggregate demand is equal to aggregate supply.
 

Option 1: Aggregate demand and aggregate supply approach
 

Option 2: Savings and investment approach
 

Option 3: Both A and B
 

Option 4: Neither A nor B.
 

Question : In the Keynesian theory of income determination, equilibrium income is achieved when:

Option 1: Aggregate demand equals aggregate supply
   

Option 2: Consumption equals savings
 

Option 3: Investment equals savings

Option 4: Leakages equal injections

Question : Effective demand refers to that level of aggregate demand which becomes effective because it is equal to aggregate supply.
 

Option 1: Aggregate demand 
 

Option 2: Aggregate supply 
 

Option 3: Effective demand 
 

Option 4: None of the above.
 

Question : It refers to a situation where the aggregate demand is equal to aggregate supply at full employment level.
 

Option 1: Full employment equilibrium 
 

Option 2: Underemployment equilibrium 
 

Option 3: Over full employment equilibrium 
 

Option 4: None of the above.
 

Question : According to Keynesian Theory, the equilibrium level of income is determined at a level when:

Option 1: Ex-ante Savings = Ex-ante Investments
 

Option 2: Ex-post Saving = Ex-post Investments
 

Option 3: Both a and b

Option 4: None