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प्रश्न
State the determinants of aggregate demand.
Explain the determinants of aggregate demand.
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उत्तर
The following are the determinants of aggregate demand:
- Consumption expenditure (C): Consumption expenditure refers to the total expenditure incurred by all the households in an economy on different types of final goods and services in order to satisfy their wants.
- Investment expenditure (I): Private investment expenditure refers to the planned (ex-ante) total expenditure incurred by all the private investors on the creation of capital goods such as expenditure incurred on new machinery, tools, buildings, raw materials etc.
- Government expenditure (G): Government expenditure refers to the total planned expenditure incurred by the government on consumption and investment purposes to enhance the welfare of the society and to achieve higher economic growth rates.
- Net exports (X – M): Net exports of a country refers to the difference between the demand for domestically produced goods and services by the rest of the world (exports) and the demand for goods and services produced abroad by the residents of that country.
संबंधित प्रश्न
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?
Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.
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What is meant by inflationary gap?
Aggregate demand can be increased by ______
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Name any two components of 'aggregate demand'.
Explain the role of Cash Reserve Ratio in removing an inflationary gap
Explain the role of 'Margin Requirements' in removing this deficient demand gap.
Explain the subjective factors which determine consumption function.
Discuss the situation when aggregate demand is more than aggregate supply at full employment income level.
What are the determinants of Aggregate demand?
Explain with reason, whether you agree or disagree with the following statement:
Aggregate supply is influenced only by availability of natural resources.
Write explanatory answer:
What is Aggregate demand ? Explain the determinants of Aggregate demand.
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.
State whether the following statement is true or false.
The equality between aggregate demand and aggregate supply determines the equilibrium level of employment.
Give reason or explain.
Aggregate demand is a positive function of the level of employment and output.
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.
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.
Discuss the working of the adjustment mechanism in the following situations:
Aggregate demand is greater than the aggregate supply.
What is meant by the “Effective Demand Principle” in the Keynesian theory of employment? Discuss using a schedule or a diagram.
Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.
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An increase in aggregate demand of equilibrium level of income and employment causes an increase in ______
Keynes theory is associated with ______
The difference between the Aggregate Demand at above full employment and Aggregate Demand at full employment is known as ______
What is meant by Equilibrium income?
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?
What is the circumstance when aggregate output is determined solely by the level of aggregate demand called?
The equilibrium level of income/output is established when ______
The slope of the supply curve is measured by ______.
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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.
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