What does the aggregate demand-aggregate supply (AD-AS) approach focus on to determine the equilibrium level of income?

Investment and government expenditure

Savings and government expenditure

In the saving-investment approach, when is an economy in equilibrium?

When consumption equals investment

When government expenditure equals saving

What does the tax multiplier (KT) represent?

The change in income due to a change in taxes

The change in taxes due to a change in income

The change in consumption due to a change in taxes

The change in investment due to a change in taxes

What is the primary effect of an increase in taxes on the consumption function and aggregate demand?

It causes an upward shift in the consumption function

It causes a downward shift in the consumption function

It has no effect on the consumption function

It causes a vertical shift in the consumption function

In the AD-AS approach, what does the aggregate supply curve represent?

Planned consumption and investment

Government expenditure and savings

What is the main objective of using the tax multiplier (KT)?

To calculate changes in consumption due to changes in taxes

To determine the equilibrium level of income

To assess the impact of government expenditure on the economy

To quantify the effect of changes in taxes on national income

The Investment Function- 2 Free MCQ Practice Test with Solutions

	Macro Economics 59 videos\|61 docs\|29 tests

	Macro Economics 59 videos\|61 docs\|29 tests

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