Advertisements
Advertisements
प्रश्न
Answer in detail.
What is Aggregate Supply? Explain the determinants of Aggregate Supply.
Advertisements
उत्तर
Aggregate supply indicates the total amount of goods and services produced within an economy at a given the general (or overall) price level during an accounting period. The aggregate supply function is represented as follows.
`AS = f(barN,barL,barK,barT)`
where,
AS = Aggregate supply
N = Natural resources
L = Labour
K = Stock of capital
T = State of technology
i. Natural resources: Natural resources include the gifts of nature like fertile land, weather conditions, adequate rainfall, flora and fauna, perennial rivers etc. All these factors act in favour of production. The aggregate supply of a country bestowed with these natural resources will be higher than the one with lower availability of natural resources.
ii. Labour: Availability of skilled and motivated labour is another determinant of supply. Highly skilled, efficient and productive labour force is better able to contribute to the production process. In this regard availability of skilled labour has a positive affect on the aggregate supply.
iii. Capital: Capital is essential in the production process. Capital helps in acquiring raw materials, equipments, plant and machinery, buildings etc which are essential for increasing the production and productivity. However, the accumulation of capital in an economy depends on the level of saving and investment. The greater the level of saving and investment, greater is the capital accumulation, thereby, greater is the impact on aggregate supply.
iv. State of technology: The state of technology greatly affects the level of production and supply in the economy. Modern and advanced technology helps in icreasing the productivity and production, while lowering the cost of production. While on one hand, it helps in better utilisation of the existing resources, on the other hand, it helps in exploring new and better resources. In this manner availability of modern and advanced technology has a positive impact on the aggregate supply.
APPEARS IN
संबंधित प्रश्न
What is aggregate supply?
Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.
Explain national income equilibrium through aggregate demand and aggregate supply. Use diagram. Also explain the changes that take place in an economy when the economy is not in equilibrium
Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.
Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.
State three measures to reduce inflationary gap.
Aggregate demand can be increased by ______
Define aggregate supply?
Explain the role of Cash Reserve Ratio in removing an inflationary gap
Explain the role of 'Margin Requirements' in removing this deficient demand gap.
What is a ‘consumption function’?
Explain the subjective factors which determine consumption function.
What are the determinants of Aggregate demand?
Write explanatory answer:
What is Aggregate demand ? Explain the determinants of Aggregate demand.
State with reason whether you agree or disagree with the following statements. (any Three)
Aggregate demand depand only on the consumption expenture.
Explain the following concepts or give definitions.
Depreciation
State whether the following statements are True or False with reason:
Income earned from foreign investment is considered for aggregate demand.
How will you derive the autonomous expenditure multiplier when the price of final goods and the rate of interest are given?
Fill in the blank with appropriate alternatives given below
The General Theory of Employment, Interest and Money was written by __________.
Fill in the blank with appropriate alternatives given below
That part of income, which is not spent on consumption, is called __________.
State whether the following statement is true or false.
The equality between aggregate demand and aggregate supply determines the equilibrium level of employment.
Define or Explain the following concept:
Aggregate Demand
Distinguish between:
Aggregate Demand and Aggregate Supply
Write Short note on:
Marginal Propensity to Consume
Answer the following question:
What are the determinants of Aggregate Demand (AD)?
Answer the following question:
What are the determinants of Aggregate Supply (AS)?
State with reason whether you agree or disagree with the following statement.
Positive net earnings from foreign transactions add to aggregate demand.
Answer in detail.
Explain the determinants of aggregate demand.
Write explanatory answer.
What is 'aggregate supply'? Explain the determinants of aggregate supply.
Explain the concept of deficient demand with the help of aggregate demand and aggregate supply curves. Discuss one physical and one monetary measure to correct it.
Choose the correct from given options
When aggregate demand is greater than aggregate supply, inventories
On which factor Keynesian Theory of Employment depends?
Keynes theory is associated with ______
What is meant by Equilibrium income?
In case of an under-employment equilibrium, which of the following alternatives is not true?
Which of the following are the definitions of money supply in India?
A decrease in Cash Reserve Ratio will lead to ______
Which of the following statement is true?
It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.
What is the circumstance when aggregate output is determined solely by the level of aggregate demand called?
If TR is 1,00,000₹ when ₹20,000 units are sold, then AR is equal to:
The equilibrium level of income/output is established when ______
The slope of the supply curve is measured by ______.
“In an economy Planned spending is more than Planned output”.
Explain its impact on the level of output, income and employment.
If planned savings exceeds planned investments in an economy, explain its likely impact on income, output and employment.
Why is effective demand also known as expost demand?
With reference to Simple Keynesian model, give the meaning of ex-ante demand.
With the help of a diagram, determine the equilibrium level of output and income by using Aggregate demand and aggregate supply approach.
