Question : Which of the following are the assumptions of determination of equilibrium output.

Price level is assumed to be constant.

The government expenditure is autonomous in nature.

Equilibrium output is to be determined in context of long run.

Option 1: Only 2

Option 2: Only 1&3

Option 3: Only 1

Option 4: All 1,2&3

Question

Question : Which of the following are the assumptions of determination of equilibrium output.

Price level is assumed to be constant.
The government expenditure is autonomous in nature.
Equilibrium output is to be determined in context of long run.

Option 1: Only 2

Option 2: Only 1&3

Option 3: Only 1

Option 4: All 1,2&3

Team Careers360 · Accepted Answer

Correct Answer: Only 1

Solution : The important points are-

Price level is assumed to be constant
It is assumed that investment expenditure is autonomous.
It equilibrium output is to be determined in contest of short run.

Hence, Option C is correct.

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Question : Which of the following statement are true?

According to Keynes, there are two approaches for determining the equilibrium level of income and employment in the economy.

In the contest of determination of equilibrium, AD, AS, savings and investment and

Question : Macroeconomics deals with which of the following studies?
I. Reasons behind the unemployment of resources.
II. Determination of total output.

Question : Which factor affecting price determination is highlighted in the given statement?
Statement: If the firm aims to maximize profits in the short run then it would fix maximum price for its products.