1.What term describes the phenomenon when a rise in investment causes a proportionally larger increase in the overall national income?
2.How is investment classified in terms of its effect on aggregate demand?
3.Which factor primarily influences the level of investment?
4.What is the effect of a rise in interest rates on the Marginal Efficiency of Capital (MEC) schedule?
5.Which factor is most likely to lead to a rise in investment?
6.According to Friedman’s consumption theory, which type of income primarily influences consumer spending?
7.What is the likely outcome of a rise in consumption at a fixed income level?
8.Given the Keynesian consumption function C = 10 + 0.8 Td, what is the average propensity to consume when the disposable income is Rs 1000?
9.Given the Keynesian consumption function C = 10 + 0.8 Td, what is the total consumption when disposable income (Td) equals Rs 1000?
10.What is the value of the multiplier when the marginal propensity to consume domestic goods is 0.9?
11.Which type of economic indicators does the government analyze to predict future economic trends?
12.What defines the socially optimal growth rate?
13.What does potential growth represent?
14.If each worker produces 200 units weekly and there are 5 workers, what is the total production for the week?
15.What typically happens to unemployment during an economic boom?
16.Which of the following represents an addition to the economy's income?
17.Which of the following actions is typically part of a deflationary economic policy?
18.What is true about injections in an economic context?
19.What is the probable effect of a substantial rise in the government budget deficit?
20.Which of the following statements about injections in an economy is accurate?