6 Questions
What does the consumption function show a relationship between?
Income and consumption expenditure
Which of the following is NOT a component of Aggregate Demand?
National income
What does Aggregate Supply represent in a two-sector economy?
National income
What is the value of Aggregate Supply in a two-sector economy?
National income
What is Autonomous Consumption?
Consumption at a zero level of income
In the equation of the consumption function, what does 'C' represent?
Consumption expenditure
This quiz covers topics such as the consumption function showing the relationship between income and consumption expenditure, and the concept of Aggregate Demand (AD) in economics. Test your knowledge on determining income, employment, and understanding the points to remember about AD.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
