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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
What is aggregate supply?
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State three measures to reduce inflationary gap.
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Explain the role of 'Margin Requirements' in removing this deficient demand gap.
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Explain the determinants of aggregate supply.
Explain with reason, whether you agree or disagree with the following statement:
Aggregate supply is influenced only by availability of natural resources.
Fill in the blank with appropriate alternatives given below
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Aggregate Demand
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Aggregate Demand and Aggregate Supply
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Answer the following question:
What are the determinants of Aggregate Supply (AS)?
State with reason whether you agree or disagree with the following statement.
Aggregate demand depends only on the consumption expenditure.
Answer in detail.
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Write explanatory answer.
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Answer the following question.
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Choose the correct from given options
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| Column A | Column B |
| (1) Y = AD | (a) Level of output at full employment |
| (2) Forward Multiplier | (b) Withdrawal of investment decreases income |
| (3) Paradox of Thrift | (c) People save less or same as before |
| (4) Multiplier (k) < 1 | (d) 0 < MPC < 1 |
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Explain its impact on the level of output, income and employment.
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