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प्रश्न
State whether the following statement is true or false.
The equality between aggregate demand and aggregate supply determines the equilibrium level of employment.
पर्याय
True
False
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उत्तर
True. The equality between aggregate demand and aggregate supply determines the equilibrium level of income and prices, which in turn determine the equilibrium level of employment.
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संबंधित प्रश्न
Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.
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 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.
Explain the concept of ‘deficient demand’ in macroeconomics.
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.
Explain the concept of deflationary gap.
Explain the role of Cash Reserve Ratio in removing an inflationary gap
Discuss the situation when aggregate demand is more than aggregate supply at full employment income level.
Write explanatory answer:
What is Aggregate demand ? Explain the determinants of Aggregate demand.
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 Supply
Give reason or explain.
Aggregate demand is a positive function of the level of employment and output.
Answer the following question:
What are the determinants of Aggregate Demand (AD)?
Answer the following question:
What are the determinants of Aggregate Supply (AS)?
Answer in detail.
Explain the equilibrium between Aggregate Demand and Aggregate Supply.
Write explanatory answer.
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.
Choose the correct from given options
When aggregate demand is greater than aggregate supply, inventories
On which factor Keynesian Theory of Employment depends?
The main component of aggregate demand is ______
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?
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 |
When the value of the currency falls as compared to other currencies, it is ______
Which of the following statement is true?
The slope of the supply curve is measured by ______.
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.
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?
