Tag: liquidity preference and profit

Questions Related to liquidity preference and profit

Public expenditure includes expenditure on social goods.

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

The aggregate demand determines the flow of total expenditure.

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

Saving increases with increase in income.

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

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

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

In the short run, land, capital, technology remain constant.

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

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

Show answer
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

For open economy aggregate demand is equal to Consumption + Investment + Government expenditure.

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

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

An open economy is an economy in which there are economic activities between the domestic country with the other countries.

Hence, for an open economy, aggregate demand is equal to Consumption + Investment + Government expenditure + (X-M) where X is the income from Exports and M is the expenditure on imports

AD = C + I + G + (X-M)

Equilibrium price and quantity is determined by ___________.

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

  1. Mid-point of demand curve

  2. Central planning agency

  3. Intersection of demand and supply curve

  4. Mutual discussion of trade and consumer associations

Show answer
Correct Option: C