HARD
Earn 100

What is ex-ante consumption? Distinguish between autonomous consumption and induced consumption.

Important Questions on Determination of Income and Employment

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.
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
Cash reserve ratio is the share of a bank's total _____ to be maintained as _____ in the form of liquid cash as per the guidelines of RBI. 
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
What is marginal propensity to consume? How is it related to marginal propensity to save?
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
What is the value of Consumption if we assume a consumption function of the following form: C = 50 + .8Y and income is equal to 1,000.
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. 
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
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).
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
Voluntary _____ is that part of the working force not willing to engage itself in gainful _____.
MEDIUM
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
What is the effective demand principle?
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
Ex-Ante depicts what has been planned, and Ex-Post depicts what has actually happened. 
MEDIUM
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
What does the assumption of 'ceteris paribus' mean in economic models?
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
_____ shows functional relationship between consumption and income.
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
What do you understand by ‘parametric shift of a line’? How does a line shift when its (i) slope decreases, and (ii) its intercept increases?
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. 
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
What is 'effective demand'? How will you derive the autonomous expenditure multiplier when price of final goods and the rate of interest are given?
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
What is the difference between ex-ante investment and ex-post investment?
MEDIUM
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
What is meant by the term 'value added' in production?
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
APC is more than 1 before the _____ point.