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WorksheetsINCOME DETREMINATION
Total questions: 10
Worksheet time: 2mins
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WorksheetsMPC=
change in consumption/change in income
income/consumption
Components of Aggregate demand are
Consumption(C) & Investment(I)
Consumtion(C) & saving(S)
National income is determined where
AD=AS
AD+AS
Autonomous consumption is equal to
Saving
Dissaving
Y=C+=?
Saving(S)
Export(X)
APC+APS=?
1
zero
Investment multiplier=
change in income/change in investment
income/saving
Relation between Multiplier and MPC=
Direct
Inverse
Two components of AS(Aggregate supply) are
C+G
C+S
To reduce infaltionary gap Bank rate should be
increased
Decreased
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