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Question
Fill in the blank with appropriate alternatives given below
Intersection between aggregate demand and aggregate supply curves determines the point of __________ demand.
Options
composite
complementary
joint
effective
Solution
Intersection between aggregate demand and aggregate supply curves determine the point of effective demand.
Explanation:
Effective demand is the actual demand for goods and services by the people in an economy. It is determined at the point where aggregate demand intersects aggregate supply.
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Give reasons or Explain the following statement
Autonomous investment is not directly linked with profit.
State whether the following statements are ‘True’ or ‘False’.
Depreciation is included in net investment.
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Real investment
Give reason or explain.
Investment demand is not the sole determinant of aggregate demand.
