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प्रश्न
State with reason whether you agree or disagree with the following statement.
Aggregate demand depends only on the consumption expenditure.
उत्तर
The above statement is incorrect. Apart from consumption expenditure, the aggregate demand also depends on the investment, government expenditure and net exports. It consists of the following components.
Demand by households - Private consumption expenditure (C)
Demand by firms - Private investment expenditure (I)
Demand by government - Government expenditure (G)
Demand by foreign sector- Net exports (X – M)
Where, X is exports and M is imports.
Thus,
AD = C + I + G + (X – M)
APPEARS IN
संबंधित प्रश्न
State the determinants of aggregate demand.
Explain the concept of 'deficient demand' in macroeconomics.
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State three measures to reduce inflationary gap.
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Explain the role of Repo Rate in reducing the Inflationary gap.
Explain the concept of Deflationary Gap
Name any two components of 'aggregate demand'.
explain the role of Bank Rate in correcting deficient demand?
Explain the role of 'Margin Requirements' in removing this deficient demand gap.
Explain the role of 'Open Market Operations' in reducing Deflationary Gap
What is 'consumption function'?
Explain the subjective factors which determine consumption function.
Explain the determinants of aggregate supply.
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.
Write explanatory answer:
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State with reason whether you agree or disagree with the following statements. (any Three)
Aggregate demand depand only on the consumption expenture.
Explain the following concepts or give definitions.
Depreciation
Fill in the blank with appropriate alternatives given below
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Fill in the blank with appropriate alternatives given below
That part of income, which is not spent on consumption, is called __________.
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 | ||
State whether the following statement is true or false.
The equality between aggregate demand and aggregate supply determines the equilibrium level of employment.
Define or Explain the following concept:
Aggregate Demand
Define or Explain the following concept:
Aggregate Supply
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Aggregate demand is a positive function of the level of employment and output.
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Aggregate Demand and Aggregate Supply
Write Short note on:
Average Propensity to Consume
Answer the following question:
What are the determinants of Aggregate Demand (AD)?
Answer the following question:
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State with reason whether you agree or disagree with the following statement.
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Answer in detail.
Explain the determinants of aggregate demand.
Answer in detail.
Explain the equilibrium between Aggregate Demand and Aggregate Supply.
Write explanatory answer.
What is 'aggregate supply'? Explain the determinants of aggregate supply.
Answer the following question.
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Discuss the working of the adjustment mechanism in the following situations:
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Answer the following question.
Describe the adjustments that may take place in an economy when ex-ante Aggregate Demand is greater than ex-ante Aggregate Supply.
Answer the following question.
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In case of an under-employment equilibrium, which of the following alternatives is not true?
Identify the correctly matched pair from Column A to Column B:
| Column A | Column B |
| (1) Y = AD | (a) Level of output at full employment |
| (2) Forward Multiplier | (b) Withdrawal of investment decreases income |
| (3) Paradox of Thrift | (c) People save less or same as before |
| (4) Multiplier (k) < 1 | (d) 0 < MPC < 1 |
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With the help of a diagram, determine the equilibrium level of output and income by using Aggregate demand and aggregate supply approach.
