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प्रश्न
Graphically, Aggregate Demand function can be obtained by vertically adding the ______ and ______ function.
विकल्प
consumption, saving
consumption, investment
investment, saving
aggregate supply, consumption
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उत्तर
Graphically, Aggregate Demand function can be obtained by vertically adding the consumption and investment function.
Explanation:
The Aggregate Demand function shows the total demand (made up of consumption + investment) at each level of income. Graphically it means the aggregate demand function can be obtained by vertically adding the consumption and investment function.
Here, OM = `overlineC`
OJ = `overlineI`
OL = `overlineC + overlineI`
The aggregate demand function is parallel to the consumption function i.e., they have the same slope c.
It may be noted that this function shows ex-ante demand.
Aggregate demand is obtained by vertically adding the consumption and investment functions.
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संबंधित प्रश्न
According to classical economists, the real wage rate is ______ to the Marginal Productivity of Labour.
The consumption function is given by \[C=\bar{C}+cY\]. What does \(\overline{C}\) denote?
In the consumption function \[C=\bar{C}+cY\], the coefficient 'c' stands for:
The slope of the consumption function is given by:
The investment function in the two-sector model is \[I = \overline{I}\]. Graphically, this is represented as:
Investment is described as 'autonomous' in the two-sector model. This means:
The aggregate demand function is parallel to the consumption function because:
In the aggregate demand diagram, if OM = \(\overline{C}\) and OJ = \(\overline{I}\) are measured on the vertical axis, then OL represents:
Aggregate demand represents which type of demand?
In the first stage of macroeconomic theory, which of the following is assumed to be fixed?
Aggregate supply (GDP) can move up or down smoothly in the short run because:
With a fixed price level, aggregate supply is represented by:
Macroeconomic equilibrium occurs where:
The ex ante aggregate demand function in the two-sector model is:
Ex ante aggregate supply in the fixed-price model is expressed algebraically as:
Starting from the equilibrium condition \[\bar{C}+\bar{I}+cY=Y\], the rearranged equilibrium condition is:
The equilibrium level of income in the two-sector fixed-price model is:
