Class 12 Macro Economics - Chapter Determination of Income and Employment NCERT Solutions | What do you understand by ‘paramet
What do you understand by ‘parametric shift of a line’? How does a line shift when its (i) slope decreases, and (ii) its intercept increases?
Considering the equation of a straight line as
b = ma + ÃŽÂμ
Where m = slope of straight line, m > 0
ÃŽÂμ = intercept on vertical axis, ÃŽÂμ> 0
Also, when a increases by 1 unit, the value of b increases by m units.
The parameters ÃŽÂμ and m are parameters of a graph.
As the value of m increases, the straight line rotates upward around the same vertical intercept. This movement is an example of parametric shift of the graph.
(i) A straight line rotates downward around the same vertical intercept as its slope decreases.
(ii) A straight line shifts parallelly upward when its intercept increases.
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