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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.

1.

Aggregate Supply and ___ are always equal.A. National IncomeB. Aggregate DemandC. Marginal Propensity to saveD. Average Propensity to Consume

Answer» Correct Answer - A
2.

Out of the following, which can have a value more than one ?A. MPCB. APCC. APSD. MPS

Answer» Correct Answer - B
3.

Which of these is a component of Aggregate demandA. Private consumption expenditureB. Investment expenditureC. Government expenditureD. All of these

Answer» Correct Answer - D
4.

AD Curve starts :A. From the originB. Point Below the originC. Point above the originD. None of these

Answer» Correct Answer - C
5.

Consumption function is the function relationship between ____ and ____.A. Consumption, Aggregate demandB. Consumption, National IncomeC. Aggregate Demand, Aggregate SupplyD. National Income, Private Income

Answer» Correct Answer - B
6.

AD curve is a :A. Horizontal straight line parallel to the X-axisB. Positively sloped curveC. Negatively sloped curveD. Vertical straight line parallel to the Y-axis

Answer» Correct Answer - B
7.

Which of the following is not a component of aggregate demand in a two-sector economy?A. Net ExportsB. Government ExpenditureC. ConsumptionD. Both (a) and (b)

Answer» Correct Answer - D
8.

Which of the following is not true about AD in a two-sector economy ?A. AD = Consumption + SavingB. AD curves starts from some point above the originC. AD = Consumption + InvestmentD. AD curve has a positive slope

Answer» Correct Answer - A
9.

Average Propensity to Consume is …….at point B and Average Propensity to Save is ……..at point A. A. 0, 1B. 1, 0C. 1, 1D. 0, 0

Answer» Correct Answer - B
10.

If C = 100 + 0.75 Y, then Saving Function will be expressed as:A. S= 100 + 0.25 YB. S = -100 + 0.75 YC. S = -100 + 0.25 YD. S = 75 + 0.25 Y

Answer» Correct Answer - C