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INCOME DETREMINATION

Total questions: 10

Worksheet time: 2mins

Name
Class
Date
1.

MPC=

a)

change in consumption/change in income

b)

income/consumption

2.

Components of Aggregate demand are

a)

Consumption(C) & Investment(I)

b)

Consumtion(C) & saving(S)

3.

National income is determined where

a)

AD=AS

b)

AD+AS

4.

Autonomous consumption is equal to

a)

Saving

b)

Dissaving

5.

Y=C+=?

a)

Saving(S)

b)

Export(X)

6.

APC+APS=?

a)

1

b)

zero

7.

Investment multiplier=

a)

change in income/change in investment

b)

income/saving

8.

Relation between Multiplier and MPC=

a)

Direct

b)

Inverse

9.

Two components of AS(Aggregate supply) are

a)

C+G

b)

C+S

10.

To reduce infaltionary gap Bank rate should be

a)

increased

b)

Decreased