Question : The aggregate demand (AD) is given by AD = C + I + G + X - M. If consumption (C) is INR 3,500, investment (I) is INR 2,000, government spending (G) is INR 1,500, exports (X) are INR 800, and imports (M) are INR 600, what is the aggregate demand?
Option 1: INR 4,200
Option 2: INR 4,700
Option 3: INR 5,200
Option 4: INR 7,200
Correct Answer: INR 7,200
Solution : The correct answer is (D) INR 7200
To calculate the aggregate demand (AD), we can substitute the given values of consumption (C), investment (I), government spending (G), exports (X), and imports (M) into the aggregate demand equation.
Given: C = INR 3,500, I = INR 2,000, G = INR 1,500, X = INR 800, M = INR 600
Substituting these values into the aggregate demand equation, we get:
AD = C + I + G + X - M
AD = 3500 + 2000 + 1500 + 800 - 600
AD = 7200
Therefore, the aggregate demand is INR 7,200.
Question : The aggregate demand (AD) is given by AD = C + I + G + X - M. If consumption (C) is INR 2,000, investment (I) is INR 1,500, government spending (G) is INR 1,000, exports (X) are INR 500, and imports (M) are INR 700, what is the aggregate demand?
Option 1: INR 3,000
Option 2: INR 3,300
Option 3: INR 3,800
Option 4: INR 4,300
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 : Gross Domestic Product (GDP) is calculated by adding ______ to ______.
Option 1: consumption, investment
Option 2: imports, exports
Option 3: investment, consumption
Option 4: exports, imports
Question : Which of the following is correct?
Option 1: AD= C+I+NX-G
Option 2: AD= C+G-I+NX
Option 3: AD= C+I+G+NX(X-M)
Option 4: AD= C+I+G+NX(M-X)
Question : Aggregate demand in a two sector model involves-
Option 1: Consumption and investment
Option 2: Investment and net exports
Option 3: Net exports and consumption
Option 4: Consumption and government
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