If, in the four-sector model, aggregate consumption and taxes are greater than aggregate income, it indicates that:

CA Foundation · Business Economics · MTP · September 2026
If, in the four-sector model, aggregate consumption and taxes are greater than aggregate income, it indicates that:
(A) A. The economy is in equilibrium
(B) B. The economy is in recession
(C) C. The economy is facing a deficit
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. None of these

Topics: Determination of National Income

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic