determinants of income and employment.

equilibrium level of output is attained where :

• AD = AS

• S = 0

• S = I

• Both (a) and (c).

investment multiplier is ________ related to MPC and ________ related to MPS.

• directly and inversely

• inversely and directly

• directly and directly

• inversely and inversely

if MPC is 0.75, then value of multiplier will be ____.

• 2

• 3

• 4

• 5

the value of multiplier lies between ___.

• 0 to infinity

• 1 to infinity

• 0 to 1

• equal to 1

if MPC = 1 , the value of multiplier will be _____.

• 0

• 1

• infinity

• between 0 to 1

when AD is greater than AS , inventories ________.

• fall

• rise

• dont change

• first fall and then rise

when planned saving is less than planned investment , it indicates a situation of _____.

• AD >AS

• AD<AS

• AD=AS

• none

when economy decides to save the whole of its additional income, then value of investment multiplier will be _____.

• 1

• indeterminate

• 0

• infinity

if MPS = 0.30, autonomous consumption = 50, investment = 100. equilibrium level of income will be _________.

• 500

• 45

• 300

• 150

if the savings of an economy is given as S = (-)40 + 0.6 Y, then MPC is ________.

• 0.6

• 0.33

• 0.4

• can not be determined