MyQuestionIcon

14

You visited us 14 times! Enjoying our articles? Unlock Full Access!

Taxation as a Tool

AD curve is r...

Question

AD curve is represented by ________ curve in the income determination analysis.

A

Consumption + Saving + Investment

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Consumption + Saving

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Saving + Investment

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Consumption + Investment

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Consumption + Investment
Aggregate Demand refers to the desired level of expenditure in the economy during an accounting year. It is what people wish to spend on the purchase of goods and services during an accounting year.
The Ad curve in income determination analysis represents a two sector economy which only includes the expenditure made by the consumer sector and the producer sector.
Therefore, aggregate demand = consumption + investment.

Suggest Corrections

thumbs-up

0

Similar questions

Q. In determination of Equilibrium Level of Income by AD-AS approach, AD curve is represented by ____________.

Q. Explain the determination of equilibrium level of national income using 'saving and investment approach. Use diagram. Also explain the effects if saving is greater than investment.

Q. According to ________________ equilibrium level of income is determined at the level where planned investment equals planned saving.

Q. Explain how equilibrium level of income can be determined with the help of aggregate demand curve and aggregate supply curve.

Q. The saving curve makes an intercept of 40 crores on the negative Y-axis. If consumers spend 60% of additional income, then determine: (i) Saving Function; (ii) Consumption Function; (iii) Break-even level of income.
((i) S = -40 + 0.40Y; (ii) c = 40 + 0.60 Y; Rs.100 crores)

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Taxation and Fiscal Policy

ECONOMICS

Watch in App

explore_more_icon

Explore more

Taxation as a Tool

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon