NCERT Solutions for Class 12 Economics Chapter 4 Income Determination

It is defined as the total value of goods and services produced and supplied at a particular point of time. When goods and services produced at a specific point of time is multiplied by the respective prices of goods and services, it helps us in getting the total value of the national output. According to Keynes theory of national income determination, the aggregate Income is always equal to consumption and savings. The formula used for aggregate income determination: Aggregate Income = Consumption(C) + Saving (S) Therefore, the AS schedule is usually called C + S schedule.