Aggregate Demand and Related Concepts

Out of the following, which can have a value more than one

• APC

• MPC

• APS

• MPS

Break even point is achieved when

• National Income=consumption

• Consumption=savings

• Consumption=investment

• National Income>consumption

Tick the wrong option

• APC can be more than 1

• APC can be equal to 1

• APC rises with increase in income

• APC can never be zero

AD curve starts

• From the origin

• Point below the origin

• Point above the origin

• None of these

The value of __________ can never be negative, while ___________ can have a value equal to one

• APS,APC

• MPC,APS

• APC,APS

• MPS,APC

If investment falls to zero, national income does not fall to zero because of

• Autonomous consumption

• Induced investment

• Autonomous investment

• Multiplier

Which of the following can have a negative value

• APC

• MPC

• MPS

• APS

_________________ refers to actual saving in an economy during a year

• Ex-ante saving

• APS

• MPS

• Ex-post saving

Which of the following is not a component of AD in a two sector economy

• Net exports

• Govt expenditure

• Consumption

• Both (a) and (b)

If C=100+0.75Y,then saving function will be expressed as

• S=100+0.25Y

• S= - 100+0.75Y

• S= - 100+0.25Y

• S=75+0.25Y