CameraIcon

SearchIcon

MyQuestionIcon

3

You visited us 3 times! Enjoying our articles? Unlock Full Access!

Ex Ante Consumption

Consumption e...

Question

Consumption expenditure is the only component of aggregate demand.

A

True

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

B

False

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

Open in App

Solution

The correct option is B False
False. Aggregate demand consists not only consumption but also consists on private investment, government consumption and investments and net exports. Aggregate demand = Household consumption + private investment + government consumption and investments + net exports.

Suggest Corrections

thumbs-up

0

Similar questions

Q. State whether the following statements are True of False:
Consumption expenditure is the only component of aggregate demand.

Q. State whether the following statements are true or false.
1. Consumption expenditure is the only component of aggregate demand.
2. The difference between a country's exports and imports is termed as net earnings from foreign transactions.
3. Autonomous consumption is income elastic.
4. The equality between aggregate demand and aggregate supply determines the equilibrium level of employment.
5. At breakeven point Consumption (C) is equal to income (Y).

Q. State with reasons whether you agree or disagree with the following statements.
1) Aggregate demand depends only on the consumption expenditure.
2) Aggregate supply is influenced by the state of technology only.
3) Positive net earnings from foreign transactions add to aggregate demand.
4) At break-even point, consumption (C) is equal to income (Y).
5) Savings are negative before break-even point.

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

Q. Aggregate demand consists of consumption and investment demand.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Ex Ante Consumption

ECONOMICS

Watch in App

explore_more_icon

Explore more

Ex Ante Consumption

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon