Explain How Does a Rise in Real Income Affect Aggregate

question 83

Essay

Explain how does a rise in real income affect aggregate demand?

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Definitions:

Employment Opportunities

Available job positions that individuals can apply for within the labor market.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Physical Capital

Tangible assets such as buildings, machinery, and equipment used in the production of goods and services.