Determination of income & employment | Saving & investment approach | Short run equilibrium output
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About this video : This video contains : --------- (i) Explanation of the basis of saving investment approach as an explanation for the determination of equilibrium output. (ii) Explanation of the theory of determination of income and employment using saving and investment approach with the help of a figure. Equilibrium is determined at that level of output where ex-ante saving, i.e. planned saving becomes equal to ex-ante investment, i.e. planned investment. Thus the condition of equilibrium is : S = I. (iii) Two cases of disequilibrium between Saving and Investment, is also explained leading to the point of equilibrium. If you liked this video then please share it and subscribe to my channel for more such videos. Thank you very much.
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