Advertisements
Advertisements
प्रश्न
Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.
Outline the steps required to be taken in deriving saving curve from the given consumption curve. Use diagram
Give a consumption curve, outline the steps required to be taken in deriving a saving curve from it. Use diagram
Outline the steps in the deriving saving curve from the given consumption curve. Use Diagram.
उत्तर
In the diagram, the consumption curve is given as `barC+bY`, where `barC` represents the autonomous consumption, Y is income and b is the rate at which C increases corresponding to an increase in Y. The aggregate supply curve is the 45° line. Consumption is equal to income at Point E.
Derivation of saving function from consumption function:
`-barC` is the saving function where negative savings are equal to autonomous consumption at Y = 0. This is shown on the negative axis in the lower panel at Point S. Here, all the income is spent on consumption expenditure. Hence, there is no saving which is shown as the breakeven point. After this point, S and Y are joined to have a straight line sloping curve.
APPEARS IN
संबंधित प्रश्न
Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.
Explain the concept of 'deficient demand' in macroeconomics.
Explain the role of Cash Reserve Ratio in removing an inflationary gap
explain the role of Bank Rate in correcting deficient demand?
What is 'consumption function'?
Explain the subjective factors which determine consumption function.
What are the determinats of Aggregate demand ?
Explain with reason, whether you agree or disagree with the following statement:
Aggregate supply is influenced only by availability of natural resources.
State with reason whether you agree or disagree with the following statements. (any Three)
Aggregate demand depand only on the consumption expenture.
Fill in the blank with appropriate alternatives given below
The General Theory of Employment, Interest and Money was written by __________.
Match the following Group:
| Group A | Group B | ||
| 1) | Aggregate Supply | a) | Expected receipts |
| 2) | Autonomous Investment | b) | Lord J. M. Keynes |
| 3) | Consumption | c) | Government Investment |
| 4) | A.P.C. | d) | ΔC/ΔY |
| 5) | Investment | e) | C/Y |
| f) | Addition to stock of capital | ||
| g) | Destruction of utility | ||
Write Short note on:
Marginal Propensity to Consume
On which factor Keynesian Theory of Employment depends?
In case of an under-employment equilibrium, which of the following alternatives is not true?
Which of the following statement is true?
The slope of the supply curve is measured by ______.
Aggregate demand can be increased by:
When aggregate demand is greater than aggregate supply, inventories:
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
