6 Questions
What does the consumption function show?
Functional relationship between income and consumption
Define Aggregate Demand (AD).
Total value of all final goods and services planned to be bought by all sectors of the economy at a given income level during a period of time
List the components of Aggregate Demand (AD).
Household consumption expenditure (C), Investment expenditure (I), Government consumption expenditure (G), Net export (X-M)
What does Aggregate Supply (AS) refer to?
Total value of all final goods and services planned to be produced by all producing units in the economy during a given period of time
What does Autonomous Consumption refer to?
Consumption that does not change with a change in income
What is the equation of the consumption function?
C = f(Y)
Test your knowledge on the consumption function and aggregate demand concepts from Class XII Economics. Explore the relationship between income and consumption expenditure, as well as the total expenditure on goods and services in an economy.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
