Home › Bihar Board Class 12 (Arts) › Economics › Determination of Income and Employment › Equilibrium output also fixes which variable, gi…
Equilibrium output also fixes which variable, given other factors of production?
AThe wage tax rate
BThe level of employment
CThe interest rate
DThe exchange rate
Answer & Solution
Correct answer: B. The level of employment
Through an aggregate production function, equilibrium output determines the level of employment.
Related questions
With a government, which term simply adds to the autonomous part of demand?How does government spending G affect aggregate demand?With A = 50, MPS = 0.2 and Y = 4000 crore, what is ex ante aggregate demand?The effective demand principle assumes aggregate supply is what at the fixed price?Under the effective demand principle, what determines aggregate output?Excess demand in the economy leads to what in the long run?What does deficient demand lead to in the long run?Equilibrium output below the full employment level indicates which situation?