16.
Explain determination of income and employment with the help of saving and investment
approach.
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According to this approach, the equilibrium level of income is determined at a level, when planned saving (S) is equal to planned investment (I). In Fig 8.2, Investment curve (I) is parallel to the X-axis because of the autonomous character of investments. ... At point 'E', ex-ante saving is equal to ex-ante investment.
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