Page 1 - Home Assignment- AD and related concepts

HOME ASSIGNMENT

Macroeconomics

Aggregate demand and related concepts

Question (Very short answer type questions-1 mark) Marks
No
1. AD cure is a ____ sloped curve. (Positively / negatively) 1

2. ________ is otherwise known as national income 1

3. State whether the following statement is true or false. 1
‘The consumption curve slopes downward and makes an
intercept on the positive side of vertical axis.’

4. Define Aggregate supply. 1

5. Which of the following is not a component of AD in a 1
two-sector economy?
a) Net Exports
b) Government Expenditure
c) Consumption
d) Both a) and b)

6. The value of MPC always varies in between ___ and ___. 1

7 If = 100 + 0.75 , then savings function will be___. 1
a. -100+0.75Y
b. 100+0.25Y
c. -100+0.25Y
d. None of these.
8 If = 100 + 0.75 , then breakeven level of national 1
income will be_________.
a. 300.
b. 200
c. 400
d. 600.

9. ____ refers to actual saving in an economy during a year. 1
a. Ex-ante savings
b. APS
c. MPS