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AGGREGATE DEMAND AND SUPPLY

Total questions: 9

Worksheet time: 3mins

Name
Class
Date
1.

____________ 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.

a)

aggregate demand

b)

aggregate supply

2.

_____________ 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.

a)

Aggregate demand

b)

Aggregate supply

3.

the level of disposable income determines the level of ____________________.

a)

consumption expenditure

b)

private expenditure

c)

government expenditure

d)

net export

4.

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

a)

consumption

b)

government expenditure

c)

investment

5.

AD curve is a :

a)

horizontal straight line parallel to the X-axis

b)

positively sloped curve

c)

negatively sloped curve

d)

vertically straight kine parallel to the y-axis

6.

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

a)

AD= consumption + saving

b)

AD curve starts from some point above the origin

c)

AD=consumption + investment

d)

AD curve has a positive slope

7.

aggregate supply and ____________ are always equal.

a)

national income

b)

aggregate demand

c)

marginal propensity to save

d)

average propensity to consume

8.

break-even point is achieved when:

a)

national income= consumption

b)

consumption = saving

c)

consumption= investment

d)

national income > consumption,

9.

_____________ refers to actual savings in an economy during a year.

a)

ex- ante saving

b)

APS

c)

MPS

d)

Ex-post saving