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प्रश्न
Statement 1: In a two sector economy, consumption expenditure and investment expenditure are the two components of Aggregate Demand.
Statement 2: Aggregate demand curve always start from point of origin with positive slope.
In the light of given statements, choose the correct alternative from the following:
विकल्प
Statement 1 is true and Statement 2 is false.
Statement 1 is false and Statement 2 is true.
Both statements 1 and 2 are true.
Both statements 1 and 2 are false.
उत्तर
Statement 1 is true and Statement 2 is false.
Explanation:
- Only the household sector and the producer sector exist in a two-sector economy.
- Consumption expenditure, or spending on final products and services, is incurred by the household sector, whereas investment expenditure, or spending on fixed assets, is incurred by the producer sector.
- The Aggregate Demand (AD) curve begins on the Y-axis since there is always some degree of consumption and investment at zero income.
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संबंधित प्रश्न
Which of the following points indicates the Great Depression?
Gross investment =
Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfers) is 100, and consumption is given by C = 100 + 0.75Y (1) What is the level of equilibrium income?
What is the marginal propensity to import when M = 60 + 0.06Y? What is the relationship between the marginal propensity to import and the aggregate demand function?
Which of the following statements are correct?
Statement 1: Marginal propensity to import is the fraction of additional income spent on imports.
Statement 2: It is given that M = 60 + 0.06Y. Therefore, marginal propensity to import (m) = 0.06.
Which of the following statements is correct?
