Advertisements
Advertisements
Question
Aggregate supply is equal to ______.
Options
C + I
C + S
I + C
S1 + S2
Advertisements
Solution
Aggregate supply is equal to C + S.
Explanation:
Aggregate supply or National Income is a sum of consumption expenditure (c) and saving (s). A major portion of income is spent on the consumption of goods and services and the balance is saved.
APPEARS IN
RELATED QUESTIONS
What is aggregate supply?
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 ‘deficient demand’ in macroeconomics.
What is meant by aggregate demand?
What is meant by inflationary gap?
Explain the concept of deflationary gap.
Explain the role of Cash Reserve Ratio in removing an inflationary gap
explain the role of Bank Rate in correcting deficient demand?
Explain the role of 'Margin Requirements' in removing this deficient demand gap.
Explain the determinants of aggregate supply.
Write explanatory answer:
What is Aggregate demand ? Explain the determinants of Aggregate demand.
Answer in detail.
Explain the equilibrium between Aggregate Demand and Aggregate Supply.
What is meant by the “Effective Demand Principle” in the Keynesian theory of employment? Discuss using a schedule or a diagram.
On which factor Keynesian Theory of Employment depends?
How is it determined by using Saving and Investment approach?
In case of an under-employment equilibrium, which of the following alternatives is not true?
A decrease in Cash Reserve Ratio will lead to ______
Which of the following statement is true?
