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 : Which of the following is an element of aggregate demand?

Option 1: Investment
 

Option 2: Savings
  

Option 3: Government expenditure

Option 4: Exports

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 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 : 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