Question : The equilibrium in the aggregate market occurs when:

Option 1: Aggregate demand equals aggregate supply
 

Option 2: Consumption equals investment
   

Option 3: Government expenditure equals net exports

Option 4: Saving equals investment

Question : Identity the graphs A, B and C given in the question.

Option 1: A-Consumption , B-Aggregate demand , C-Investment 
 

Option 2: A-Aggregate demand , B-Investment, C-Consumption
 

Option 3: A-Investment, B-Consumption , C-Aggregate demand 
 

Option 4: A-Investment, B-Aggregate demand, C-Consumption.

Question : In an open economy, aggregate demand is estimated as:

Option 1: Private consumption expenditure
 

Option 2: Private consumption expenditure + Government expenditure
  

Option 3: Private investment expenditure + Private consumption expenditure + Government expenditure

Option 4: Private consumption expenditure + Private investment expenditure + Government expenditure + Net exports

Question : In the aggregate expenditure model, equilibrium occurs when aggregate expenditure is equal to:

Option 1: Consumption expenditure
  

Option 2: Investment expenditure
  

Option 3: Government expenditure

Option 4: Net exports

Question : Higher the disposable income, higher is ___________ expenditure.
 

Option 1: Consumption expenditure.
 

Option 2: Government expenditure.
 

Option 3: Investment expenditure.
 

Option 4: Net exports