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Keynesian Economics: Consumption Function and Multiplier - Class XII
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AD curve is a _________________.
AnswerClick to flip back
A
upward sloping curve
💡 Explanation:
Aggregate Demand refers to
the desired level of expenditure in the economy during an accounting year. It
is what people wish to spend on the purchase of goods and services during an
accounting year.
AD curve is upward sloping owing to increasing income in the economy as the income increases, the expenditure by the people also increases which leads to rising AD. Therefore, income and AD has a positive relationship between them.