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Income determination refers to the process of establishing the level of income for individuals, businesses, or economies based on various factors such as production, consumption, and market demand. It often involves analyzing how resources are allocated and how different economic activities contribute to overall earnings. In macroeconomics, income determination is crucial for understanding economic growth, employment levels, and fiscal policies. Various models, such as the Keynesian and classical theories, offer different perspectives on how income is generated and distributed within an economy.

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