AGGRAGATE DEMAND AND RELATED CONCEPTS

If entire additional income is saved then MPC is

• Zero

• 1

• Infinity

• 2

At zero level of income, consumption is

• Zero

• positive

• Negative

• All of these

Induced investment is influenced by

• income

• Profit

• Both A and B

• Neither A nor B

Value of APS is negative when

• Y>C

• Y

• Y=C

• S=Y

If AD >AS national income will

• Increase

• Decrease

• Not change

• May increase or decrease

In the consumption function, 200 + 0.6Y, the value of autonomous saving will be

• 200

• -200

• 0.6

• 0.4

What is the value of MPC, when S = -100 + 0.4Y?

• 1.5

• 0.6

• 2.5

• 2.05

Which of the following is true for the Classical Theory of Employment?

• State of full employment in the economy

• No possibility of over-or under-production in the economy

• Both (a) and (b)

• None of the above

The relation between consumption and savings are:

• Inverse

• Direct

• Inverse and direct both

• Neither inverse nor direct.

Which of the following can never have negative value

• APC

• MPC

• MPS

• APS