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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.

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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. 
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
_____ refers to actual savings in an economy during a year. 
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
APC is more than 1 before the _____ point.
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.
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 _____.
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.
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.
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 _____.
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 _____.
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.
HARD
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
APS is less than _____ when consumption is more than national income. 
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
The summation of MPC and _____ have the value of equal to 1.
EASY
Economics>Macroeconomics>Determination of Income and Employment>Aggregate Demand and its Components
Equilibrium occurs when Ex-ante saving is equal to _____.
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
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.
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 _____.