HARD
12TH CBSE
IMPORTANT
Earn 100

What is 'effective demand'? How will you derive the autonomous expenditure multiplier when price of final goods and the rate of interest are given?

Important Questions on Determination of Income and Employment

HARD
12TH CBSE
IMPORTANT
Introductory Macroeconomics>Chapter 4 - Determination of Income and Employment>Q 5
Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure A is Rs 50 crores, and MPS is 0.2 and level of income Y is Rs 4000 crores. State whether the economy is in equilibrium or not (cite reasons).
EASY
12TH CBSE
IMPORTANT
Introductory Macroeconomics>Chapter 4 - Determination of Income and Employment>Q 6
Explain 'Paradox of Thrift'.