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O X
Y Z
E
G
C
C + I
Y = C + S
National Income
AggregateDemandandSupply
Y1 YF
Aggregate Demand curve
Aggregate Supply curve
450
Figure 1:Determination of National Income
o
Y
X
E
II
S
S
Y
National Income
SavingandInvestment
Figure 2: Determination of National Income
I
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Saving and investment equilibrium