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प्रश्न
Read the following statements carefully:
Statement 1: The consumption curve is an upward sloping straight line curve due to the direct relationship between income and consumption and the assumption of constant Marginal Propensity to Consume.
Statement 2: Aggregate Demand curve and Consumption curve are parallel to each other.
In the light of the given statements, choose the correct alternative from the following:
विकल्प
Statement 1 is true and statement 2 is false
Statement 1 is false and statement 2 is true
Both statements 1 and 2 are true
Both statements 1 and 2 are false
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उत्तर
Both statements 1 and 2 are true
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संबंधित प्रश्न
Given the following data, find the missing value of 'Government Final Consumption Expenditure' and 'Mixed Income of Self Employed'.
| S.No. | Particulars | Amount (In ₹ crores) |
| (i) | National Income | 71,000 |
| (ii) | Gross Domestic Capital Formation | 10,000 |
| (iii) | Government Final Consumption Expenditure | ? |
| (iv) | Mixed Income of Self Employed | ? |
| (v) | Net Factor Income from Abroad | 1,000 |
| (vi) | Net Indirect Taxes | 2,000 |
| (vii) | Profits | 1,200 |
| (viii) | Wages & Salaries | 15,000 |
| (ix) | Net Exports | 5,000 |
| (x) | Private Final Consumption Expenditure | 40,000 |
| (xi) | Consumption of Fixed Capital | 3,000 |
| (xii) | Operating Surplus | 30,000 |
State the meaning of the following:
Autonomous Consumption
Aggregate Demand is not determined by which of the following.
On the basis of following schedule, answer the given questions:
| Income (in ₹ crores) |
Savings (in ₹ crores) |
| 0 | -20 |
| 50 | -10 |
| 100 | 0 |
| 150 | 30 |
| 200 | 60 |
- Calculate Marginal Propensity to Save (MPS) at ₹ 150 crores level of income.
- What is the value of Autonomous Consumption?
If in an economy, the Investment Multiplier is 4 and Autonomous Consumption is ₹ 30 crore, the relevant consumption function would be ______.
What is autonomous consumption?
Which component of \[C=\bar{C}+cY\] is independent of income?
What is induced consumption?
Which expression represents induced consumption in the consumption function?
Which formula correctly defines Marginal Propensity to Consume (MPC)?
Which formula correctly defines Marginal Propensity to Save (MPS)?
If \[MPC=0.8\], what is MPS?
What does the 45° line represent?
What is saving at a point where income equals consumption on the 45° line?
What does it mean when the consumption curve is below the 45° line?
For the consumption function \[C=100+0.8Y\], what is autonomous consumption?
