Frequently Asked Questions :
1. Consumption Function
2. Aggregate Demand and its Components
3. What is macroeconomics ? State its vital components ?
1. Consumption Function
2. Aggregate Demand and its Components
3. What is macroeconomics ? State its vital components ?
4. What is consumption expenditure?
5. What is consumption function?
6. What is Fundamental Psychological Law?
7. Define Average and Marginal Propensity to consume? Explain with a numerical example.
8. Explain why MPC is always positive and not greater than one?
9. In APC and MPC the value of which parameter can be greater than one and when?
10. Give the equation for a linear consumption function?
11. Explain that sum total of APC and APS is equal to 1 ?
12. Explain that sum total of MPC and MPS is equal to 1 ?
13. Can MPS or MPC ever be negative?
14. What is Marginal Propensity to consume? How is it related to Marginal Propensity to Save?
15. Distinguish between autonomous and induced investment ?
16. State two approaches to the determination of equilibrium level of income in an economy ?
17. Why is there an equilibrium in the economy when AS=AD ?
5. What is consumption function?
6. What is Fundamental Psychological Law?
7. Define Average and Marginal Propensity to consume? Explain with a numerical example.
8. Explain why MPC is always positive and not greater than one?
9. In APC and MPC the value of which parameter can be greater than one and when?
10. Give the equation for a linear consumption function?
11. Explain that sum total of APC and APS is equal to 1 ?
12. Explain that sum total of MPC and MPS is equal to 1 ?
13. Can MPS or MPC ever be negative?
14. What is Marginal Propensity to consume? How is it related to Marginal Propensity to Save?
15. Distinguish between autonomous and induced investment ?
16. State two approaches to the determination of equilibrium level of income in an economy ?
17. Why is there an equilibrium in the economy when AS=AD ?
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