determination of incomr and employment

The value of ...... can be greater than 1

• Marginal propensity to consume

• Average propensity to consume

• Average propensity to save

• Marginal propensity to save

Statement 1: consumption function assumes that, consumption changes at a constant rate as income changes

Statement 2: autonomous consumption is the ratio of total consumption (C) to total income (Y)

• Statement one is true and statement 2 is false.

• Statement 1 is false and statement 2 is true.

• Both statements are true

• Both statements are false

Graphically aggregate demand function can be obtained by vertically adding the ......... And ......... Function.

• Consumption, saving

• Consumption, investment

• Investment, saving

• Aggregate supply, consumption

Statement 1 in a 2 sector economy consumption expenditure and investment expenditure are the two components of aggregate demand.

Statement 2 aggregate demand curve always start from point of origin with a positive slope.

• Statement 1 is true and the statement 2 is false

• Statement 1 is false and the statement 2 is true

• Both statement are true

• Both statements are false

If increase in national income is equal to increase in savings, the value of marginal propensity to conceive would be ...........

• Equal to unity

• Greater than one

• Less than one

• Equal to zero

Statement 1: The induced consumption shows the director relation between consumption and income.

Statement 2: with a certain increase in income, induced consumption also increases

• Statement 1 is true and statement 2 is false

• Statement 1 is false and statement 2 is true

• Both statement are true

• Both statement are false

Assertion (A) at the break - even level of income, the value of average propensity to consume (APC) is Zero

Reason (R) sum of average propensity to consume (APC) and average propensary to save (APS) is always equal to the one.

• Both assertion (A) and reason (R) true and reason (R) is the correct explanation of assertion (A)

• Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true, but Reason (R) is false

• Assertion (A) is false , but Reason (R) is true

,......... Refers to the level of aggregate demand which can be made by the corresponding supply in the economy

• autonomous consumption

• effective demand

• Excess Damand

• Deficient demand

Assertion (A) saving cow makes a negative intercept on the vertical access at the zero level of income.

Reason (R) saving function refers to the functional relation between saving and income.

• Both Assertion (A) and Reason (R) are true and reason (R) is the correct explanation of Assertion (A)

• Bothe assertion (A) and reason (R) are true, but reason (r);is not the correct explanation of Assertion (A)

• Assertion (A) is true, but reason (R) is false

• Assertion (A) is false, but reason(R) are true

Statement 1 the consumption curve is an upward sloping straight line curve due to the direct relationship between income and consumption and the assumption of constant marginal propensity to consume.

Statement 2 aggregate demand curve and the consumption curve are parallel to each other.

• Statement 1 is true and statement 2 is false

• Statement 1 is false and statement 2 is true

• Both statements are true

• Both statements are false