Income & Employment Determination
Aggregate demand and supply, investment multiplier, equilibrium level of income, and excess/deficient demand.
5 articles in this topic
Asked in the 2026-27 sample paper
Economics · Q6 · 1 marks
Applies MPC/consumption slope.
Open the complete solved paperEconomics · Q10 · 1 marks
Applies investment multiplier range.
Open the complete solved paperEconomics · Q15 · 4 marks
Computes equilibrium income and excess/deficient demand.
Open the worked questionEconomics · Q17 · 6 marks
Explains autonomous/induced consumption and RBI OMO purchases; OR APC/ex-ante AD items.
Open the worked questionAll articles
RBI's Monetary Policy Tools: CRR, SLR, Repo Rate & Bank Rate Explained
Every time you hear a headline about the RBI "hiking the repo rate" or "cutting CRR," it can sound like abstract jargon. But these tools directly control how much money circulates in the Indian economy — affecting everything from home loan EMIs to inflation.
Excess and Deficient Demand: Inflationary and Deflationary Gaps Explained
Learn what happens when aggregate demand is too high or low: inflationary gap, deflationary gap, reasons, and corrective fiscal and monetary measures.
The Investment Multiplier: How ₹200 Crore of Spending Creates ₹800 Crore of Income
Understand the Keynesian investment multiplier — what it is, how it works, the formula, step-by-step chain examples, and solved numericals.
Consumption and Saving Functions Explained: MPC, MPS, APC, APS
Master the consumption function, saving function, MPC, MPS, APC, and APS with clear formulas, examples, and derivations.
The Keynesian Revolution: Why Economies Don't Always Fix Themselves
Understand why Keynes rejected classical economics, how aggregate demand drives employment, and the core principles of Keynesian macroeconomics.