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प्रश्न
Define or Explain the following concept:
Aggregate Demand
Explain aggregate demand.
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उत्तर
Aggregate demand: Aggregate demand implies the total demand of final goods and services by various individuals in all the sectors in an economy. It expresses the total demand in terms of money. In this manner, it can be defined as the actual aggregate expenditure incurred by all the people in an economy on different goods and services.
AD = C + I + G + (X – M)
Where,
Demand by households - Private consumption expenditure (C)
Demand by firms - Private investment expenditure (I)
Demand by government - Government expenditure (G)
Demand by foreign sector- Net exports (X – M)
Where, X is exports and M is imports.
संबंधित प्रश्न
State the determinants of aggregate demand.
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.
What is meant by aggregate demand?
State components of aggregate demand.
Why does consumption curve not start from the origin?
What is meant by inflationary gap?
State three measures to reduce inflationary gap.
Define aggregate supply?
Explain the concept of deflationary gap.
Name any two components of 'aggregate demand'.
Explain the role of Cash Reserve Ratio in removing an inflationary gap
What is a ‘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.
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 __________.
Match the following Group:
| Group A | Group B | ||
| 1) | Aggregate Supply | a) | Expected receipts |
| 2) | Autonomous Investment | b) | Lord J. M. Keynes |
| 3) | Consumption | c) | Government Investment |
| 4) | A.P.C. | d) | ΔC/ΔY |
| 5) | Investment | e) | C/Y |
| f) | Addition to stock of capital | ||
| g) | Destruction of utility | ||
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 Supply
Give reason or explain.
Aggregate demand is a positive function of the level of employment and output.
Write Short note on:
Marginal Propensity to Consume
State with reason whether you agree or disagree with the following statement.
Aggregate demand depends only on the consumption expenditure.
State with reason whether you agree or disagree with the following statement.
Aggregate supply is influenced by the state of technology only.
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.
Answer in detail.
What is Aggregate Supply? Explain the determinants of Aggregate Supply.
Answer in detail.
Explain the equilibrium between Aggregate Demand and 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
Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.
On which factor Keynesian Theory of Employment depends?
On which concept does classical viewpoint depend?
Keynes theory is associated with ______
The difference between the Aggregate Demand at above full employment and Aggregate Demand at full employment is known as ______
Aggregate supply is equal to ______.
How is it determined by using Saving and Investment approach?
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?
When the value of the currency falls as compared to other currencies, it is ______
A decrease in Cash Reserve Ratio will lead to ______
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?
The slope of the supply curve is measured by ______.
When aggregate demand is greater than aggregate supply, inventories:
“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.
With reference to Simple Keynesian model, give the meaning of ex-ante demand.
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
With the help of a diagram, determine the equilibrium level of output and income by using Aggregate demand and aggregate supply approach.
