Macro

Income & Employment

Easy

Slope of Consumption curve is denoted by :

Average Propensity to Consume

Average Propensity to Save

Marginal Propensity to Consume

Marginal Propensity to Save

✅ Correct Option: 3

The consumption function is C = C-bar + bY, where b is the slope. The slope measures the change in consumption per unit change in income, which is $\frac{\Delta C}{\Delta Y}$ = MPC (Marginal Propensity to Consume). APC is C/Y which is the ratio, not the slope. Hence the slope of the consumption curve is MPC.

2022: 15 July Shift 2

Which of the following is true about the aggregate demand curve in the short run;

Choose the correct option:

2025: 13 May Shift 1

If output equilibrium is less than the full employment level, then this condition is known as:

2022: 15 July Shift 2

Assume that in an economy increased consumption is equal to increased saving, how many times will the national income increase in such an economy with an increase in investment?

2025: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Marginal propensity to save	(I) Slope of consumption function
(B) Marginal propensity to consume	(II) Value is 1 at the break even point of the economy
(C) Investment Multiplier	(III) Reciprocal of marginal propensity to save
(D) Average propensity to consume	(IV) 1- c

Choose the correct answer from the options given below:

2022: 16 July Shift 2

Identify the correct statement from the following:

A. Consumption curve starts from the origin

B. The sum of APC and APS is equal to 1

C. Aggregate demand and market demand mean the same

D. The value of MPC and MPS varies between 0 and 1

E. At breakeven point saving is zero

Choose the correct answer from the options given below:

2025: 28 May Shift 2

In the consumption equation, the slope of the consumption function is represented as:

Slope of Consumption curve is denoted by :

Solution

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