HARD
Earn 100

Outline the steps required to be taken in deriving saving curve from the given consumption curve. Use diagram.

OR

Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use diagram.

Important Questions on Determination of Income and Employment

HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
The sum of marginal propensity _____ and marginal propensity _____ is always equal to one. 
MEDIUM
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
_____ demand is determined at the point of equality between aggregate demand and aggregate supply.
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
Average propensity to consume refers to the ratio of _____ expenditure to the corresponding level of income.
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
The ratio of consumption at a particular level of income is called _____.
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
According to Keynes, there are _____ Approaches for determining the equilibrium level of income and employment in the economy.
MEDIUM
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
If saving function of an economy is given as: S = - 60 + 0.3 (Y), then MPC is _____. 
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
_____ supply is the money value of total supply of goods and services available for _____ by an economy. 
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
_____ shows functional relationship between consumption and income.
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
Equilibrium occurs when Ex-ante saving is equal to _____.
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
The point at which saving curve intersects X-axis is known as _____.
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
In an economy, break-even point and equilibrium point may lie at the same level of income, if ex-ante investments are _____. 
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
_____ refers to actual savings in an economy during a year. 
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
APS is less than _____ when consumption is more than national income. 
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
The total demand for final goods and services in an economy in a given period is known as _____.
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
The summation of MPC and _____ have the value of equal to 1.
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
If MPC is equal to 0.60, then MPS is equal to _____.
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
APC is more than 1 before the _____ point.
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
The relation between average propensity to consume and average propensity to save can be expressed as _____.
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
_____ refers to minimum level of consumption, which is needed for survival.
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
The value of consumption in an economy would be Rs. _____ if national income of economy is Rs. 5000 crore and the ratio between APC and APS is 3:2.