English

Choose the Correct from Given Options When Aggregate Demand is Greater than Aggregate Supply, Inventories - Economics

Advertisements
Advertisements

Question

Choose the correct from given options
When aggregate demand is greater than aggregate supply, inventories

Options

  • fall

  • rise

  • do not change

  • first fall, then rise

MCQ

Solution

When aggregate demand is greater than aggregate supply, inventories fall.
Hence, the correct answer is option fall.

shaalaa.com
  Is there an error in this question or solution?
2016-2017 (March) Foreign Set 3

RELATED QUESTIONS

State the determinants of aggregate demand.


Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.


Aggregate demand can be increased by ______


Explain the role of Repo Rate in reducing the Inflationary gap.


explain the role of Bank Rate in correcting deficient demand?


Discuss the situation when aggregate demand is more than aggregate supply at full employment income level.


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

Define or Explain the following concept:

Aggregate Supply


Answer in detail.
What is Aggregate Supply? Explain the determinants of Aggregate Supply.


Answer the following question.
What is meant by the "Effective Demand Principle" in the Keynesian theory of employment? Discuss using a schedule or a diagram.


Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.


On which concept does classical viewpoint depend?


Keynes theory is associated with ______ 


The equilibrium level of income/output is established when ______


“In an economy Planned spending is more than Planned output”.

Explain its impact on the level of output, income and employment. 


If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?


With the help of a diagram, determine the equilibrium level of output and income by using Aggregate demand and aggregate supply approach.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×