Question

Under which circumstance will the level of national income expand?

Answer 1

Answer:

So an increase in real national income means that there has been an increase in the quantity of goods and services produced. ... This method adds the value of goods and services produced by all firms in both the private and public sectors.Most simply, the formula for the equilibrium level of income is when aggregate supply (AS) is equal to aggregate demand (AD), where AS = AD. Adding a little complexity, the formula becomes Y = C + I + G, where Y is aggregate income, C is consumption, I is investment expenditure, and G is government expenditure.