Question : Aggregate supply is obtained from _________.
Option 1: Consumption and saving schedule
Option 2: Consumption and investment schedule
Option 3: Investment and savings schedule
Option 4: None of the above.
Correct Answer: Consumption and saving schedule
Solution : Aggregate supply is obtained by adding consumption and savings schedules. AS= C+I Hence, Option A is correct.
Question : Inventory rises above the desired level when
Option 1: Savings is more than investment
Option 2: Savings is less than investment
Option 3: Savings is equal to investment
Option 4: None of the above
Question : Aggregate supply = ________________
Option 1: Consumption
Option 2: National income
Option 3: Both of the above.
Question : Inventory falls below the desired level when
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 : In the Keynesian theory of income determination, equilibrium income is achieved when:
Option 2: Consumption equals savings
Option 3: Investment equals savings
Option 4: Leakages equal injections
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