Economics Class 12

At Equilibrium level

• Consumption = Investment

• Saving =Investment

• Consumption =Saving

• Aggregate demand =Consumption

Multiplier is ________ related to MPC

• Directly

• Indirectly

• Not

• Rarely

If MPC is 0.6, then value of multiplier is

• 2.5

• 4

• 1.67

• 1

If MPC is zero, the value of multiplier is

• 0

• 1

• Between 0 and 1

• Infinity

In determination of Equilibrium level of Income by AD-AS approach, AD curve is represented by

• (C+I) curve

• (C+S) curve

• (S+I) curve

• (S+Y) curve

Average Propensity to Consume equal to

• C/Y

• Y/C

• dC/dY

• dY/dC

Autonomous Consumption indicates

• Consumption related to income

• Consumption not related to income

• Minimum income

• Both 1 and 2

Relationship between MPS and Multiplier is

• Direct

• Indirect

• Not any relation

• All of these

MPS can never be

• 1

• More than 1

• Less than 1

• Zero

What is the formula of Investment Multiplier?

• dY/dI

• dI/dY

• dS/dC

• dC/dS