Advertisements
Advertisements
प्रश्न
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
उत्तर
It will generate an inflationary gap or lead to inflation.
APPEARS IN
संबंधित प्रश्न
What is aggregate supply?
Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.
Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.
Define aggregate supply?
Explain the concept of Deflationary Gap
Explain the role of Cash Reserve Ratio in removing an inflationary gap
Explain the subjective factors which determine consumption function.
Write explanatory answer:
What is Aggregate demand ? Explain the determinants of Aggregate demand.
Explain the following concepts or give definitions.
Depreciation
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 Supply
Answer in detail.
Explain the determinants of aggregate demand.
Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.
In case of an under-employment equilibrium, which of the following alternatives is not true?
It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.
If TR is 1,00,000₹ when ₹20,000 units are sold, then AR is equal to:
When aggregate demand is greater than aggregate supply, inventories:
“In an economy ex-ante Aggregate Demand is less than ex-ante Aggregate Supply.”
Explain its impact on the level of output, income and employment.
If planned savings exceeds planned investments in an economy, explain its likely impact on income, output and employment.
