Suppose in a closed economy aggregate demand is given by AD = A(y,i) where y is real income and i is rate of interest. IS curve represents a locus of different combinations of y and i for which y=A(y,i). What is $\frac{dy}{di}$ along the IS curve?

Question

Suppose in a closed economy aggregate demand is given by AD = A(y,i) where y is real income and i is rate of interest. IS curve represents a locus of different combinations of y and i for which y=A(y,i). What is $\frac{dy}{di}$  along the IS curve?

cdquestions Admin · Accepted Answer

The correct option is(B): $\frac{A'_j}{1-A'_y}$

Answer

$\frac{A'_j}{1+A'_y}$

Answer

$\frac{A'_j}{1-A'_y}$

Answer

$\frac{1-A'_y}{A'_j}$

Answer

$\frac{1+A'_y}{A'_j}$

Suppose in a closed economy aggregate demand is given by AD = A(y,i) where y is real income and i is rate of interest. IS curve represents a locus of different combinations of y and i for which y=A(y,i). What is \(\frac{dy}{di}\) along the IS curve?

The Correct Option is B

Solution and Explanation

Top Questions on Indifference curve analysis

Questions Asked in CUET PG exam