In: Economics
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
|
Q12). sorry the graph is not available on question.
so as per my teaching experience, the correct option is (b).
point where consumption equals income
Q13). The correct option is (a).
Businesses will cut back spending
because as the price rises economy will move upward along the aggregate demand curve. An increase in any of the components of aggregate demand shifts the AD curve to the right. When the AD curve shifts to the right it increases the level of production and the average price level. When an economy gets close to potential output , the price will increase more than the output as the AD rises.
Q14). The correct option is (c)
Taxes.
In the circular flow model, injections into the economy include investment, government purchases, and exports while leakages include savings, taxes, and imports.
Q15). The correct option is
True.
The classical model of the economy is based on the assumption of full employment without inflation in the economy. In the classical view, economy automatically adjusts themselves through the interaction of demand and supply model.
Q16). The correct option is (a)
Wages should have fallen, increasing demand for labor.
There are several explanations for the so-called efficiency wage. It may also be that there’s a minimum wage law that puts a floor on how far wages can drop. It may also be that labor unions, through their strengths, keep wages above equilibrium.
Q17). The correct option is (c).
Government spending depends on the exchange rate.
The first factor is the size of the deficit the government has. This is essentially tax income minus spending; the larger the defcit the less likely the government is to spend. This means the second factor is how willing the government is to borrow, which increases the national debt.
Q18). The correct option is (a).
Sally’s total spending cannot exceed 80% of her income.
Consumption changes as income changes. Now, how much consumption changes in response to a given change in income depends upon the average and marginal propensity to consume. Thus, propensity to consume of a community can be known by the average and marginal propensity to consume.
Hope you got the answers.
Thanks.