Assume a two sector economy in the above diagram, the initial demand curve $AD_1$ shifts upward to $AD_2$ due to :

The aggregate demand line shifts parallel upwards. The reason behind this is :

Who is the author of "The General Theory of Employment, Interest and Money"?

At the short run equilibrium of income and employment, __________.

When autonomous investment increases in a two-sector model, then.

1. The aggregate demand curve shifts upwards.
2. Output/GDP increases by the same magnitude as the change in investment.
3. Autonomous expenditure increases by the same magnitude as the change in investment.
4. The consumption curve shifts upwards.

If MPS in the economy increases, what will be the effect on MPC of economy ?

Deficient demand is said to exist in the economy when-