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प्रश्न
What is a ‘consumption function’?
What is meant by the term ‘consumption’?
What is a consumption function (propensity to consume)?
What do you mean by consumption function?
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उत्तर
A propensity to consume, or the consumption function, states the relationship between the aggregate consumption expenditure and aggregate income. This concept was introduced by Lord Keynes under his psychological law of consumption, which states that as income increases, consumption also increases but at a lesser rate than the increase in income.
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संबंधित प्रश्न
What is aggregate supply?
Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.
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Explain the concept of ‘deficient demand’ in macroeconomics.
State components of aggregate demand.
Explain how government spending can be helpful in removing deficient demand.
Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.
Why does consumption curve not start from the origin?
What is meant by inflationary gap?
State three measures to reduce inflationary gap.
Aggregate demand can be increased by ______
Explain the role of Repo Rate in reducing the Inflationary gap.
Name any two components of 'aggregate demand'.
explain the role of Bank Rate in correcting deficient demand?
Explain the subjective factors which determine consumption function.
Explain the determinants of aggregate supply.
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.
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
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 | ||
State whether the following statement is true or false.
The equality between aggregate demand and aggregate supply determines the equilibrium level of employment.
Define or Explain the following concept:
Aggregate Demand
Define or Explain the following concept:
Aggregate Supply
Distinguish between:
Aggregate Demand and Aggregate Supply
Write Short note on:
Average Propensity to Consume
Write Short note on:
Marginal Propensity to Consume
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.
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.
What is Aggregate Supply? Explain the determinants of Aggregate Supply.
Write explanatory answer.
What is 'aggregate supply'? Explain the determinants of aggregate supply.
Explain the concept of deficient demand with the help of aggregate demand and aggregate supply curves. Discuss one physical and one monetary measure to correct it.
Answer the following question.
State and discuss the components of Aggregate Demand in a two-sector economy.
Answer the following question.
Describe the adjustments that may take place in an economy when ex-ante Aggregate Demand is greater than ex-ante 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.
On which factor Keynesian Theory of Employment depends?
On which concept does classical viewpoint depend?
In a closed economy, aggregate demand is the sum of ______.
The difference between the Aggregate Demand at above full employment and Aggregate Demand at full employment is known as ______
Aggregate supply is equal to ______.
What is meant by Equilibrium income?
In case of an under-employment equilibrium, which of the following alternatives is not true?
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 ______
It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.
What is the circumstance when aggregate output is determined solely by the level of aggregate demand called?
If TR is 1,00,000₹ when ₹20,000 units are sold, then AR is equal to:
The equilibrium level of income/output is established when ______
The slope of the supply curve is measured by ______.
“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?
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
