Advertisements
Advertisements
Question
Name any two components of 'aggregate demand'.
Solution
Two components of aggregate demand:
i. Private consumption expenditure (C)
ii. Private investment expenditure (I)
APPEARS IN
RELATED QUESTIONS
Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.
Explain how government spending can be helpful in removing deficient demand.
Explain the concept of Deflationary Gap
Explain the role of Cash Reserve Ratio in removing an inflationary gap
Explain the role of 'Open Market Operations' in reducing Deflationary Gap
Explain the determinants of aggregate supply.
Explain with reason, whether you agree or disagree with the following statement:
Aggregate supply is influenced only by availability of natural resources.
State whether the following statements are True or False with reason:
Income earned from foreign investment is considered for aggregate demand.
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 | ||
Write Short note on:
Average Propensity to Consume
Answer the following question:
What are the determinants of Aggregate Demand (AD)?
Answer in detail.
What is Aggregate Supply? Explain the determinants of Aggregate Supply.
Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.
An increase in aggregate demand of equilibrium level of income and employment causes an increase in ______
Keynes theory is associated with ______
Which of the following statement is true?
It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.
The equilibrium level of income/output is established when ______
Aggregate demand can be increased by:
Why is effective demand also known as expost demand?
