The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called...................

Arrange the following statement considering the effects on total income and output when the government purchases (G) increase keeping taxes constant.

(A). Planned aggregate expenditure will increase.

(B). When G exceeds T, the government runs a deficit.

(C). Equilibrium income will increase.

(D). Aggregate demand schedule shifts rightward.

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Machines produced in an economy in a given year are a part of ................

When aggregate output is determined solely by the level of aggregate demand, the relation between aggregate supply and price is?

Which of the following is not one of the components of aggregate demand in the economy ?

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

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In an economy if all individual increases the proportion of income they save, then arrange following statements in their chronological order.

(A) Marginal propensity to consume decreases.

(B) The level of income decreases.

(C) The amount of savings remains the same.

(D) The aggregate demand curve rotates downwards.

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