At equilibrium level of income in an economy:

What will happen in the economy if aggregate demand (AD) is less than aggregate supply (AS)?

If all the people of the economy increase the proportion of income they save, the total value of savings in the economy will not increase - it will either decline or remain unchanged. This result is known as the___.

If the equilibrium level of output is more than the full employment level, it is due to the fact that the demand is more than the level of output produced at full employment level. This situation is called as.............

The study of macroeconomics usually simplifies the analysis of how the country's total ouput and the level of employment are related to.

Calculate the equilibrium income when MPC = .25 and transfers increases by 50.

In graphical representation, how is the aggregate demand function obtained?