Question : In the Keynesian theory of income determination, equilibrium income is achieved when:

Option 1: Aggregate demand equals aggregate supply
   

Option 2: Consumption equals savings
 

Option 3: Investment equals savings

Option 4: Leakages equal injections

Question : _________________ refers to the actual or realised savings in an economy during an year.

Option 1: Ex-post savings

Option 2: Ex-ante savings

Option 3: Ex-post investment 

Option 4: Ex-ante investment

Question : Assertion: In the determination of equilibrium output, only ex-ante saving and ex-ante investment is considered.

Reason: Ex-ante saving and ex-ante investment are always equal to each other.

Option 1: Both Assertion and Reason are correct, and the Reason is the correct explanation of the Assertion.
 

Option 2: Both Assertion and Reason are correct, but the Reason is NOT the correct explanation of the Assertion.
 

Option 3: Assertion is correct, but the Reason is incorrect.

Option 4: Assertion is incorrect, but the reason is correct

Question : Which of the following statement are true?

1. Slope of consumption curve is indicated by APC.
2. According to Keynesian theory of employment, Ex-ante savings and ex-post savings are always equal.

Option 1: Both are true.
 

Option 2: Both are false.
 

Option 3: Statement 1 is true, statement 2 is false.
 

Option 4: Statement 1 is false, statement 2 is true.
 

Question : According to this approach, the equilibrium level of income in an economy is determined where aggregate demand is equal to aggregate supply.
 

Option 1: Aggregate demand and aggregate supply approach
 

Option 2: Savings and investment approach
 

Option 3: Both A and B
 

Option 4: Neither A nor B.