Question

Using proper diagrams, explain the determination of national income in the short run and

long run​

Answer 1

Answer:

ɪɴ ᴛʜᴇ sʜᴏʀᴛ ʀᴜɴ, ᴛʜᴇ ʟᴇᴠᴇʟ ᴏғ ɴᴀᴛɪᴏɴᴀʟ ɪɴᴄᴏᴍᴇ ɪs ᴅᴇᴛᴇʀᴍɪɴᴇᴅ ʙʏ ᴀɢɢʀᴇɢᴀᴛᴇ ᴅᴇᴍᴀɴᴅ ᴀɴᴅ ᴀɢɢʀᴇɢᴀᴛᴇ sᴜᴘᴘʟʏ. ᴛʜᴇ sᴜᴘᴘʟʏ ᴏғ ɢᴏᴏᴅs ᴀɴᴅ sᴇʀᴠɪᴄᴇs ɪɴ ᴀ ᴄᴏᴜɴᴛʀʏ ᴅᴇᴘᴇɴᴅs ᴏɴ ᴛʜᴇ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ᴄᴀᴘᴀᴄɪᴛʏ ᴏғ ᴛʜᴇ ᴄᴏᴍᴍᴜɴɪᴛʏ. ʙᴜᴛ ᴅᴜʀɪɴɢ ᴛʜᴇ sʜᴏʀᴛ ᴘᴇʀɪᴏᴅ ᴛʜᴇ ᴘʀᴏᴅᴜᴄᴛɪᴠᴇ ᴄᴀᴘᴀᴄɪᴛʏ ᴅᴏᴇs ɴᴏᴛ ᴄʜᴀɴɢᴇ.