AGGREGATE DEMAND AND SUPPLY

____________ refers to the total value of final goods and services which all the sectors of an economy are planning to buy at a given level of income during a period of one accounting year.

• aggregate demand

• aggregate supply

_____________ refers to the money value of goods and services that all the producers are willing to supply in an economy in a given time period.

• Aggregate demand

• Aggregate supply

the level of disposable income determines the level of ____________________.

• consumption expenditure

• private expenditure

• government expenditure

• net export

which of the following is not a component of aggregate demand in a two-sector economy?

• consumption

• government expenditure

• investment

AD curve is a :

• horizontal straight line parallel to the X-axis

• positively sloped curve

• negatively sloped curve

• vertically straight kine parallel to the y-axis

which of the following is not true about AD in a two-sector economy?

• AD= consumption + saving

• AD curve starts from some point above the origin

• AD=consumption + investment

• AD curve has a positive slope

aggregate supply and ____________ are always equal.

• national income

• aggregate demand

• marginal propensity to save

• average propensity to consume

Consumption in the economy depends on all these factors EXCEPT.

• Corporate Taxes

• Consumer Confidence

• Income Tax

• Interest Rates

If a country imports more than it exports, it is experiencing a _______________

• Budget Surplus

• Budget Deficit

• Trade Surplus

• Trade Deficit

A strong rise in energy cost is likely to lead to

• A rise in real GDP and the price level

• A fall in GDP and the price level

• A fall in real GDP but a rise in the price level

• A rise in real GDP but a fall in the price level