Question : Higher the disposable income, higher is ___________ expenditure.
Option 1: Consumption expenditure.
Option 2: Government expenditure.
Option 3: Investment expenditure.
Option 4: Net exports
Correct Answer: Consumption expenditure.
Solution : Higher the disposable income, higher is consumption expenditure. Hence, Option A is correct.
Question : In an open economy, aggregate demand is estimated as:
Question : Aggregate demand in a two sector model involves-
Question : ____________ refers to the total expenditure incurred by all private firms on capital goods.
Question : ____________ refers to the total expenditure incurred by government on consumer goods and capital goods to satisfy the common needs of the economy.
Question : ____________ refers to the total expenditure incurred by households on purchase of goods and services during an accounting year.
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