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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
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Explain how government spending can be helpful in removing deficient demand.
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State three measures to reduce inflationary gap.
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Explain the determinants of aggregate supply.
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Explain with reason, whether you agree or disagree with the following statement:
Aggregate supply is influenced only by availability of natural resources.
Write explanatory answer:
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State with reason whether you agree or disagree with the following statements. (any Three)
Aggregate demand depand only on the consumption expenture.
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Income earned from foreign investment is considered for aggregate demand.
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Aggregate Supply
Distinguish between:
Aggregate Demand and Aggregate Supply
Answer the following question:
What are the determinants of Aggregate Demand (AD)?
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.
Aggregate supply is influenced by the state of technology only.
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.
Explain the determinants of 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.
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Answer the following question.
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Aggregate supply is equal to ______.
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