Macro

Income & Employment

Easy

The value of MPC lies between:

-1 and 1

0 and 100

1 and 100

0 and 1

✅ Correct Option: 4

MPC is the fraction of additional income spent on consumption. Since extra consumption cannot be negative or exceed the extra income, $0 \le MPC \le 1$ ; hence its value lies between 0 and 1.

2025: 30 May Shift 2

A change in autonomous spending causes aggregate output of final goods to change by a large or small amount due to?

2026: 21 May Shift 2

What is the expression for the investment multiplier?

2022: 19 July Shift 2

If the level of effective demand is much below the level of full employment equilibrium then which situation will appear in the economy ?

2025: 13 May Shift 1

If all the people of the economy increase the proportion of income they save, the total value of savings in the economy will not increase - it will either decline or remain unchanged. This result is known as .......

2026: 13 May Shift 2

The ex -ante output of final goods can also be considered as ?

2023: 20 June Shift 1

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

The value of MPC lies between:

Solution

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