Question

i need an explanation on 'determination of income in two sector model '​

Answer 1

Explanation:

The higher the level of employment, the higher the level of income. As level of employment is determined by aggregate demand and aggregate supply, the level of income is also determined by aggregate demand and aggregate supply. ... The two sectors are consumption demand by households and investment demand by entrepreneurs.

Answer 2

Answer:

The higher the level of employment, the higher the level of income. As level of employment is determined by aggregate demand and aggregate supply, the level of income is also determined by aggregate demand and aggregate supply. ... The two sectors are consumption demand by households and investment demand by entrepreneurs.