Class XII Economics: Consumption Function and Aggregate Demand

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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.

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