Macro

Income & Employment

Medium

Find the incorrect option from the following?

APC = 1, at break even point

APS = 0, at break even level of income

MPC is the slope of Aggregate Demand

MPC is the slope of saving curve

✅ Correct Option: 4

At the break-even point APC=1 and APS=0, and since AD=C+I with I autonomous, the slope of the AD curve equals MPC — all correct. However, the slope of the saving curve is MPS ( $=1-MPC$ ), not MPC, so option 4 is incorrect.

2025: 2 June Shift 1

From the given table, identify the level of income, where Average Propensity to Save (APS) becomes zero:

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:

2025: 30 May Shift 2

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

2025: 29 May Shift 1

Suppose in a hypothetical economy ,the income rises from ₹5000 crores to ₹6000 crores. As a result, the consumption expenditure rises from ₹4000 cores to ₹4600 crores. Then what will be the marginal propensity to consume?

2023: 1 June Shift 1

If MPC and MPS are equal, then the value of multiplier is :

Find the incorrect option from the following?

Solution

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