Question : If aggregate supply exceeds aggregate demand, it is likely to result in:

Option 1: Recessionary gap
    

Option 2: Inflationary gap
   

Option 3: Equilibrium output

Option 4: Economic growth

Question : The equilibrium price of a commodity will rise if there is a/an:

Option 1: increase in supply combined with a decrease in demand.

Option 2: increases in both demand and supply.

Option 3: decrease in both demand and supply.

Option 4: increase in demand accompanied by a decrease in supply.

Question : The market equilibrium for a commodity is determined by:

Option 1: the market supply of the commodity.

Option 2: the balancing of the force of demand and supply for the commodity.

Option 3: the intervention of the government.

Option 4: market demand of the commodity.

Question : In an economy, the investment expenditure is Rs.80 crore and consumption function is C= 80+0.75Y. Calculate 
Equilibrium level of income.

Option 1: 640

Option 2: 700

Option 3: 840

Option 4: 900

Question : The saving function of an economy is given as S= -40+0.40Y. If the planned investment is Rs. 250 crore, Calculate equilibrium level of income in the economy.

Option 1: 725

Option 2: 755

Option 3: 780

Option 4: 800