If the equilibrium level of output is less than the full employment level, then it is a situation of:

A change in autonomous spending causes aggregate output of final goods to change by a large or small amount due to?

If MPC and MPS are equal, then the value of multiplier is :

When in a two sector economy, at a particular price level, aggregate demand for final goods equals aggregate supply of final goods, the final goods or product market reaches its equilibrium. In this context, identify the correct statement.

Put the alternatives given below in the sequence in which they occur to reach the equilibrium level of out put given that aggregate demand falls short of aggregate supply.

(A) In this case, the firm has to run down existing inventories, which will lead to a fall in production and hence income.

(B) Stocks will be piling up in the warehouses, causing unintended accumulation of inventories.

(C) Ex- ante demand for final goods falls short of the output of final goods that the producers have planned to produce in a given year.

(D) process continues till Ex- ante demand for final goods equals to ex -ante output of final goods

Choose the correct answer from the options given below:

Which one of the following is correct formula for deriving the investment multiplier?

A. 1/(1 - MPC)

B. 1/MPS

C. 1/(1 - MPS)

D. (1 - MPC)/MPS

Choose the correct answer from the options given below:

Identify the correct expression to calculate equilibrium level of income of an economy.