Tag: income determination

Questions Related to income determination

Inventory investment refers to investment in fixed capital assets. 

economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

  1. True

  2. False

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Correct Option: B

Autonomous consumption can be zero.

economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

  1. True

  2. False

Show answer
Correct Option: B

Autonomous consumption expenditure cannot be zero.

economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

  1. True

  2. False

Show answer
Correct Option: A

Sweezy's model does not explain ______________.

economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

  1. price rigidity

  2. price determination

  3. output determination

  4. kinked demand determination

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Correct Option: B
Explanation:

The Sweezy's kinked demand curve model advocates the behavior of oligopolistic organizations when the price and output are determined. Therefore, Instead of laying emphasis on price-output determination, the model explains the behavior of oligopolistic organizations when price and output is determined.