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प्रश्न
Graphically, Aggregate Demand function can be obtained by vertically adding the ______ and ______ function.
पर्याय
consumption, saving
consumption, investment
investment, saving
aggregate supply, consumption
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उत्तर
Graphically, Aggregate Demand function can be obtained by vertically adding the consumption and investment function.
Explanation:
The Aggregate Demand function shows the total demand (made up of consumption + investment) at each level of income. Graphically it means the aggregate demand function can be obtained by vertically adding the consumption and investment function.
Here, OM = `overlineC`
OJ = `overlineI`
OL = `overlineC + overlineI`
The aggregate demand function is parallel to the consumption function i.e., they have the same slope c.
It may be noted that this function shows ex-ante demand.
Aggregate demand is obtained by vertically adding the consumption and investment functions.
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संबंधित प्रश्न
In the general linear equation \[Y = a + bX\], what does the constant 'a' represent?
Graphically, the intercept of the consumption function \[C=\bar{C}+cY\] is:
The investment function in the two-sector model is \[I = \overline{I}\]. Graphically, this is represented as:
Investment is described as 'autonomous' in the two-sector model. This means:
Aggregate demand in the two-sector model shows:
The aggregate demand function is parallel to the consumption function because:
In microeconomics, the supply curve is drawn with:
In the first stage of macroeconomic theory, which of the following is assumed to be fixed?
With a fixed price level, aggregate supply is represented by:
Macroeconomic equilibrium occurs where:
The ex ante aggregate demand function in the two-sector model is:
Ex ante aggregate supply in the fixed-price model is expressed algebraically as:
Starting from the equilibrium condition \[\bar{C}+\bar{I}+cY=Y\], the rearranged equilibrium condition is:
The equilibrium level of income in the two-sector fixed-price model is:
