Macro

Income & Employment

Medium

From the following figure, how to obtain an aggregate demand function?

✅ Correct Option: 4

Option 4: OL -> In demand aggregation diagrams, the aggregate demand function is obtained by horizontally summing individual demand curves. The aggregate quantity demanded at any given price level is measured from the origin (O) to the point representing total demand (L). OL represents the complete aggregate demand, showing the total market demand from the starting point (origin O) to the final aggregate point (L). -> correct

2023: 11 June Shift 3

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

2023: 30 May Shift 1

What will be the effect on Aggregate Demand when MPC decreases ?

2025: 22 May Shift 1

A decrease in autonomous spending causes aggregate output of final goods to .................... through the multiplier process.

2026: 11 May Shift 2

When autonomous investment increases, the Aggregate Demand curve will ___________.

2025: 26 May Shift 2

Arrange the following in chronological order, starting from the earliest.

(A) Publishing of 'An inquiry into the Nature and Cause of the Wealth of Nations'.

(B) The Great Depression.

(D) Publishing of 'General Theory of Employment, Interest and Money'.

Choose the correct answer from the options given below:

2025: 31 May Shift 1

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

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

From the following figure, how to obtain an aggregate demand function?

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)