12576 + Interview Questions in Secondary School in Economy Page 8 InterviewSolution

351.	4. Determinants of aggregate demandThe following graph shows a decrease in aggregate demand in a hypothetical country. Specifically, aggregate demand shifts to the left from AD1to AD2, causing the quantity of output demanded to fall at all price levels. For example, at a price level of 140, output is now $200 billion, where previously it was $300 billion.The following table lists several determinants of aggregate demand. Complete the table by indicating the change needed in each determinant to decrease aggregate demand.DeterminantChange Needed to Decrease Aggregate DemandConsumer Confidence ________________Government Purchases ________________Interest Rates Increase ________________Incomes in Other Countries _______________
Answer» Answer: 4. Determinants of AGGREGATE demand The following graph shows a decrease in aggregate demand in a hypothetical country. Specifically, aggregate demand shifts to the left from AD1 to AD2 , causing the quantity of output demanded to fall at all price levels. For example, at a price level of 140, output is now $200 billion, where previously it was $300 billion. The following table lists several determinants of aggregate demand. Complete the table by indicating the CHANGE needed in each determinant to decrease aggregate demand. Determinant Change Needed to Decrease Aggregate Demand Consumer CONFIDENCE ________________ Government PURCHASES ________________ Interest Rates INCREASE ________________ Incomes in Other Countries _______________

351.

4. Determinants of aggregate demandThe following graph shows a decrease in aggregate demand in a hypothetical country. Specifically, aggregate demand shifts to the left from AD1to AD2, causing the quantity of output demanded to fall at all price levels. For example, at a price level of 140, output is now $200 billion, where previously it was $300 billion.The following table lists several determinants of aggregate demand. Complete the table by indicating the change needed in each determinant to decrease aggregate demand.DeterminantChange Needed to Decrease Aggregate DemandConsumer Confidence __Government Purchases Interest Rates Increase Incomes in Other Countries _

Answer»

Answer:

4. Determinants of AGGREGATE demand

The following graph shows a decrease in aggregate demand in a hypothetical country. Specifically, aggregate demand shifts to the left from AD1

to AD2

, causing the quantity of output demanded to fall at all price levels. For example, at a price level of 140, output is now $200 billion, where previously it was $300 billion.

The following table lists several determinants of aggregate demand. Complete the table by indicating the CHANGE needed in each determinant to decrease aggregate demand.

Determinant

Change Needed to Decrease Aggregate Demand

Consumer CONFIDENCE ________________

Government PURCHASES ________________

Interest Rates INCREASE ________________

Incomes in Other Countries _______________

368.	Through private participation in health and education sector is much needed in India government intervention in regulating the sector is equally important bring out the implication of the statement justifying the circumstances.
Answer» The private participation in health and education sector is much needed in india government intervention in regulating the sector is equally IMPORTANT bring out the implication of circumstances is the government tries to combat market inequities through REGULATION, taxation and SUBSIDIES. The governments may also intervene in markets to promote general economic fairness through maximizing social welfare is one of the most common and best UNDERSTOOD REASONS for government intervention.

369.	0.2...200andAns.: 1,150 crores)Government final consumption expenditureChange in stocksNet domestic capital formation( in Crores)250(iv)(v)65InterestProfitsCorporation taxRent15090(vii)210501004060Indirect tax20Factor income to abroad55ExportsSubsidiesKits ImportsConsumption of fixed capital20Private final consumption expenditure500(xvi) Compensation of employees450xvíi) Value of rent for free accommodation to employees40(Ans. 1880 crores)2580by (a) Income method and (b) Expenditure Methoa.From the following data, calculate Gross National Product at Market Prices(viii Factor income from abroad
Answer» 335890865919979779796958

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