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State with Reason Whether You Agree Or Disagree with the Following Statement. Positive Net Earnings from Foreign Transactions Add to Aggregate Demand.

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प्रश्न

State with reason whether you agree or disagree with the following statement.

Positive net earnings from foreign transactions add to aggregate demand.

संक्षेप में उत्तर
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उत्तर

Positive income from foreign transactions implies that the income of the people increases. Aggregate demand is a direct function of the net positive income earnings from foreign transactions. As such income increases the aggregate demand also increases.  

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अध्याय 10: Determinants of Aggregates - Exercise 5 [पृष्ठ ९४]

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मायकल वाझ Economics [English] 12 Standard HSC
अध्याय 10 Determinants of Aggregates
Exercise 5 | Q 1.3 | पृष्ठ ९४

संबंधित प्रश्न

What is aggregate supply?


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.


What is meant by inflationary gap?


Aggregate demand can be increased by ______


Explain the concept of deflationary gap.


explain the role of Bank Rate in correcting deficient demand?


Explain the role of 'Margin Requirements' in removing this deficient demand gap.


What is a ‘consumption function’?


Explain the subjective factors which determine 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  


What is ‘effective demand’? How will you derive the autonomous expenditure multiplier when price of final goods and the rate of interest are given?


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

Define or Explain the following concept:

Aggregate Demand


Give reason or explain.

Aggregate demand is a positive function of the level of employment and output.


Distinguish between:

Aggregate Demand and Aggregate Supply


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.
Explain the determinants of aggregate demand.


Answer in detail.
What is Aggregate Supply? Explain the determinants of Aggregate Supply.


Answer the following question.
State and discuss the components of Aggregate Demand in a two-sector economy.


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.


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.


The main component of aggregate demand is ______ 


On which concept does classical viewpoint depend?


An increase in aggregate demand of equilibrium level of income and employment causes an increase in ______ 


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?


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?


Identify the correctly matched pair from Column A to Column B:

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

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 ______


Which of the following statement is true?


It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.


If TR is 1,00,000₹ when ₹20,000 units are sold, then AR is equal to:


Aggregate demand can be increased by:


When aggregate demand is greater than aggregate supply, inventories:


“In an economy ex-ante Aggregate Demand is less than ex-ante Aggregate Supply.”

Explain its impact on the level of output, income and employment. 


Why is effective demand also known as expost demand?


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