The aggregate demand line shifts parallel upwards. The reason behind this is:
Autonomous Investment increase
The correct answer is Autonomous Investment increase.
Autonomous investment refers to investment that occurs regardless of income levels. An increase in autonomous investment, such as government spending on infrastructure or private sector investment in new projects, leads to an upward shift in the aggregate demand (AD) curve.
This shift results in higher levels of output and employment, stimulating economic growth.
Important Questions from Determination of Income and Employment
MPS is defined as:
Identify the term that is called National Income of an Economy:
In 1955, a committee was formed for promoting Rural Development through small-scale industries. Choose the name of the committee from the following:
Identify the incorrect statement in the context of Employment:
Thermal power plant uses ________ to produce thermal energy:
