Advertisements
Advertisements
प्रश्न
State the determinants of aggregate demand.
Explain the determinants of aggregate demand.
Advertisements
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?
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 ‘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?
State three measures to reduce inflationary gap.
Explain the role of Repo Rate in reducing the Inflationary gap.
Explain the concept of deflationary gap.
Explain the role of Cash Reserve Ratio in removing an inflationary gap
What is a ‘consumption function’?
Explain the subjective factors which determine consumption function.
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.
State whether the following statements are True or False with reason:
Income earned from foreign investment is considered for aggregate demand.
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 __________.
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.
Write Short note on:
Marginal Propensity to Consume
Answer the following question:
What are the determinants of Aggregate Supply (AS)?
Answer in detail.
Explain the determinants of aggregate demand.
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.
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 ______
In a closed economy, aggregate demand is the sum of ______.
Keynes theory is associated with ______
Aggregate supply is equal to ______.
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 |
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:
When aggregate demand is greater than aggregate supply, inventories:
If planned savings exceeds planned investments in an economy, explain its likely impact on income, output and employment.
Why is effective demand also known as expost demand?
With reference to Simple Keynesian model, give the meaning of ex-ante demand.
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
