Aggregate Demand and Its Components

Which component of aggregate demand can be calculated by subtracting imports from exports?

What is the term used for the sum of expenditures by households, firms, the government, and foreign buyers on a country's goods and services?

Which component of aggregate demand is influenced directly by government policies and spending?

Which of the following components of aggregate demand includes spending by businesses on capital goods?

Which component of aggregate demand is represented by the total amount of goods and services demanded at different price levels?

What is the effective demand principle?

What does the paradox of thrift state?

What is the multiplier mechanism in macroeconomics?

What is inventory investment?

How is equilibrium in the goods market determined in the two-sector model?

What does the two-sector model in macroeconomics include?

How is the marginal propensity to consume (MPC) defined?

What is autonomous consumption in the consumption function?

What is the main focus of Keynesian theory in macroeconomics?

What does the assumption of 'ceteris paribus' mean in economic models?

Suppose the producers plans to add 100 cr worth of goods to her stock by the end of the year. However, due to an unforeseen upsurge of demand for her goods in the market, she had to sell goods worth 30 cr from her existing stock. Now, determine Ex-ante Investment and Ex-post Investment from the above information.

If MPC = 0.75, autonomous consumption = 100 crore, then find the level of consumption at income level = 8,000 crore :

What would be the value of investment multiplier if MPC = MPS?

Elasticity of demand is constant and equal to 1 at every point on the demand curve. The shape of such a demand curve would be :

Match List I with List II

Choose the correct answer from the options given below: