Tag: unemployment and employment generation

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Multiple choice economics concept of excess demand and deficient demand unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

_____________ refers to what the households and firms are expected to spend on the purchase of different goods and services in the economy.

  1. Aggregate supply price

  2. Aggregate demand price

  3. Aggregate expenditure

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Aggregate demand price refers to the the maximum value of money which the households and firms expect to spend on the purchase of different goods and services for consumption and production purpose respectively in the economy. 

Multiple choice economics concept of excess demand and deficient demand unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

The aggregate supply function starts from the origin.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Aggregate supply refers to the desired level of output in the economy during an accounting year. It is through this output only that the producer sector generates income. Aggregate supply function is a upward sloping curve which denotes the direct relation between the level of output produced in the economy and income generates. The curve starts from the origin indicating the income at zero level of output in the economy. 

Multiple choice economics concept of excess demand and deficient demand unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Aggregate supply function is a ___________ curve.

  1. upward sloping

  2. horizontal curve, followed by a upward sloping

  3. downward sloping

  4. upward sloping curve at first, followed by a vertical
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Aggregate supply refers to the desired level of output in the economy during an accounting year. It is through this output only that the producer sector generates income. Aggregate supply function is a upward sloping curve which denotes the direct relation between the level of output produced in the economy and income generates. The curve become vertical after full employment level of output indicating the maximum amount of output which can be produced in the economy generating the respective national income. 

Multiple choice economics concept of excess demand and deficient demand unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Aggregate supply function becomes parallel to the Y-axis, after the full employment level has been achieved in the economy.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Aggregate supply refers to the desired level of output in the economy during an accounting year. It is through this output only that the producer sector generates income. Aggregate supply function is a upward sloping curve which denotes the direct relation between the level of output produced in the economy and income generates. The curve become vertical i.e. parallel to Y-axis after full employment level of output indicating the maximum amount of output which can be produced in the economy generating the respective national income. 

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

Which of the following is a correct statement?

  1. Every registered taxable person other than ISD, non-resident tax payer & a person paying tax under section 10, 51 or 52 shall verify, validate, modify or delete the details communicated in Form GSTR 2A

  2. The details of outward supplies communicated in Form GSTR 2A cannot be modified or altered

  3. The registered taxable person should accept the details communicated in Form GSTR 2A by 12th of the succeeding month

  4. The registered taxable person other than ISD, non-resident tax payer & a person paying tax under section 10, 51 or 52 shall furnish the details of inward supplies of goods or services excluding tax payable on reverse charge basis.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under GST regulations, registered taxable persons (with specific exceptions) are required to verify, validate, modify, or delete the details of inward supplies communicated in Form GSTR 2A to ensure accurate tax reporting.

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

Aggregate supply is a function of the level of employment in the short run.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In the short run, the aggregate supply curve is typically modeled as a function of the level of employment, assuming other factors like capital and technology remain constant. As employment increases, output increases along the short-run aggregate supply curve.

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

The aggregate demand determines the flow of total expenditure.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Aggregate demand represents the total demand for finished goods and services in an economy, which effectively dictates the total planned expenditure by households, firms, and the government.

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

Saving increases with increase in income.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to the consumption function, as income rises, saving typically increases because the marginal propensity to save is positive. Households save a portion of additional income. While the relationship may not be strictly linear at very high income levels (the savings rate can plateau), the general principle that higher income leads to higher savings is well-established in economics.

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

Changes in level of income and employment can be brought by changing aggregate demand.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In Keynesian theory, aggregate demand is the primary driver of output and employment in the short run. Changes in aggregate demand lead to changes in the equilibrium level of income and employment.