Aggregate Demand and its Determinants-Macroeconomics Online Test

Aggregate Demand:
is the total Demand for all goods and services in the economy during an Accounting Year
is inversely related to the Price level
is positively related to the Income level
is measured in terms of total expenditure on goods and services
All of the above
Which of the following statements holds true for Aggregate Demand? I even with zero level of Income, there is a minimum level of Aggregate Demand II Aggregate Demand continues to rise with rise in the level of Income, but after a certain level Aggregate Demand falls behind the rise in Income III Aggregate Demand is positively related to the level of employment in the economy
I only
II only
III only
I and II
I, II and III
A schedule with different amounts of Savings at different levels of Income shows the:
Aggregate Supply
Aggregate Demand
Propensity to Save
Marginal Propensity to Consume
None of the above
The relation between Average Propensity to Consume (APC) and the Average Propensity to Save (APS) is:
APC = APS
APC X APS = 1
APC / APS = 1
APS = APC – 1
APS = 1 – APC
The existence of Deficient Demand leads to:
Excess of Inventory stock with the producers
Reduced planned Aggregate Supply for the subsequent year
Reduction in the level of planned Output
Reduction in the level of Income and Employment
All of the above
Which term is used to describe a situation when the Aggregate Demand is in excess of Aggregate Supply corresponding to full employment in the economy?
Deflationary Gap
Deficient Demand
Excess Demand
Depression
Cyclical Fluctuations
Aggregate Supply: I is the flow of goods and services in an economy II can be increased by utilizing the existing resources fully III can be increased by improving the technology
I only
II only
III only
II and III
I, II and III
In a closed economy, Aggregate Demand is:
Consumption
Investment
Consumption and Investment
Change in Savings divided by Change in Income
Consumption plus Investment plus Exports minus Imports
The ratio between the change in Consumption and the change in Income is:
Propensity to Consume
Marginal Propensity to Consume
Income level
Propensity to Save
Marginal Propensity to Save
In an open economy, Aggregate Demand is:
Consumption
Investment
Consumption and Investment
Change in Savings divided by Change in Income
Consumption plus Investment plus Exports minus Imports
Description:

In Macroeconomics, the concept of Aggregate Demand stands for the total Demand in the economy. Here is a 7-minute short Multiple Choice questions test relating to Demand, Aggregate Demand, Behaviour of Aggregate Demand, Aggregate Demand Function and its related concepts in Macroeconomics. While taking this test, go through all the options very carefully and then, mark your answers.

Discussion

SoftSkills and Spoken English Courses

Thanks a ton Savita. Do recommend the test to other students of Economics

4359 days 4 hours 37 minutes ago

savita

easy nd nice test

4381 days 18 hours 12 minutes ago

SoftSkills and Spoken English Courses
EnglishteachersVinodita Sankhyan Namrata Arora
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