aggregate demand and its related components

Since AS = C + I ,the equilibrium will be established where C+S = C +I ,or where

• S= I

• S>I

• S<I

Keynes theory of GDP determination is based on the assumption of

• a closed economy

• short period analysis

• AS is perfectly elastic

• all of the above

On account of an injection of aggregate demand ,equilibrium level of income

• increases

• decreases

• remains constant

• none of these

Keynes discusses the equilibrium level of output using the concept of

• Autonomous Investment

• Induced Investment

• both a & b

• none of these

When C = 100 + 0.5 Y & Y = 1200,autonomous consumption will be

Output always increases when AD increases

• true

• false

MPC + APC = 1

• TRUE

• FALSE

APS is always less than 1

• true

• false

If APS = 0.6 ,how much will be APC?

C is positively related to Y,but C is not zero when Y is zero

• true

• false