Macro

Income & Employment

Easy

Identify the symbol that is used to denote autonomous consumption.

$\bar{C}$

$\Delta C$

MPC

✅ Correct Option: 1

In the consumption function $C = \bar{C} + bY$ , the symbol $\bar{C}$ (C-bar) denotes autonomous consumption: the amount consumed when income is zero. $C$ is total consumption, $\Delta C$ is change in consumption, and MPC is the marginal propensity to consume.

2025: 15 May Shift 1

Aggregate output is determined solely by the level of aggregate demand. This is known as effective demand principle. Which of the following is not the assumptions behind this principle?

2025: 3 June Shift 2

Even if income is zero, some consumption still takes place, which is independent of income. This type of consumption is called?

2024: 16 May

If there is no government and no foreign trade, then :

2026: 6 June Shift 1

If the supply of final goods is assumed to be infinitely elastic at a constant price over a short period of time, aggregate output is determined solely by the value of aggregate demand. This is called.

2026: 12 May Shift 1

An increase in government spending will lead to _________

2026: 21 May Shift 2

With the price level as fixed, the aggregate supply curve in macroeconomic equilibrium is:

Identify the symbol that is used to denote autonomous consumption.

Solution

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