Question:medium
In a two-sector economy, Aggregate Supply can be determined by adding .............. and .............. (Choose the correct option to fill in the blanks)
In a two-sector economy, Aggregate Supply can be determined by adding .............. and .............. (Choose the correct option to fill in the blanks)
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In a two-sector model, consumption and investment are the main components determining aggregate demand and supply.
Updated On: Mar 17, 2026
- Consumption, investments
- Investments, savings
- Consumption, savings
- Savings, exports
Show Solution
The Correct Option is A
Solution and Explanation
In a two-sector economy, aggregate supply equals consumption plus investment. Consumption represents household expenditure, and investment represents business spending. Together, these comprise the economy's total output.
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