Capital formation and savings are critical indicators of economic health as they reflect investment potential and economic stability. The other options are not standard measures.
List I | List II |
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(A) IS-LM Model | Combines Keynesian cross and elements of the theory of liquidity preference (II) |
(B) IS Curve | Shows the points that satisfy equilibrium in the goods market (I) |
(C) Intersection of IS and LM | Shows the interest rate and income that satisfy equilibrium in both markets for a given price level (IV) |
(D) LM Curve | Shows the points that satisfy equilibrium in the money market (III) |