Macro

National Income

Easy

When at a particular price level, aggregate demand for final goods equals aggregate supply of final goods, the final goods or product in market reaches its equilibrium. Aggregate demand for final goods consist of ex-ante consumption, ex-ante investment, government spending etc. The rate of increase in ex-ante consumption due to a unit increase in income is called marginal propensity to consume.

Final goods are those goods.

Which are used in the process of production

Which are used as an intermediate good

Which are purchased for the purpose of reselling in the same year

Which are either used for consumption or for investment

✅ Correct Option: 4

Final goods are those that are not used for further processing or resale within the same year; they are used either for final consumption by households/government or for investment (capital formation). Goods used in production or resale are intermediate goods.

Question 46

Equilibrium in product market achieved when.

Question 48

Aggregate demand for final goods doesn't include.

Question 49

MPC stands for.

Question 50

The sum total of MPC and MPS is always equal to:

Final goods are those goods.

Solution

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