CA Foundation Exam > CA Foundation Questions > On account of an injection of aggregate deman...
Start Learning for Free
On account of an injection of aggregate demand, the equilibrium level of income
- a)Increases
- b)Decreases
- c)Remains constant
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
On account of an injection of aggregate demand, the equilibrium level ...
On account of an injection of aggregate demand, the equilibrium level of income increases.
Most Upvoted Answer
On account of an injection of aggregate demand, the equilibrium level ...
Explanation:
Injection of Aggregate Demand:
An injection of aggregate demand refers to an increase in the total spending on goods and services in an economy. This can come from various sources such as government spending, investment, or exports.
Equilibrium Level of Income:
The equilibrium level of income is the level at which aggregate demand equals aggregate supply in an economy. This is the point where there is no tendency for the level of income to change.
Effect on Equilibrium Income:
When there is an injection of aggregate demand, it leads to an increase in the total spending in the economy. This increase in spending will lead to an increase in the equilibrium level of income. This is because businesses will produce more goods and services to meet the higher demand, leading to an increase in income for factors of production.
Conclusion:
Therefore, on account of an injection of aggregate demand, the equilibrium level of income increases. This is a key concept in macroeconomics to understand how changes in spending can impact the overall level of income in an economy.
Injection of Aggregate Demand:
An injection of aggregate demand refers to an increase in the total spending on goods and services in an economy. This can come from various sources such as government spending, investment, or exports.
Equilibrium Level of Income:
The equilibrium level of income is the level at which aggregate demand equals aggregate supply in an economy. This is the point where there is no tendency for the level of income to change.
Effect on Equilibrium Income:
When there is an injection of aggregate demand, it leads to an increase in the total spending in the economy. This increase in spending will lead to an increase in the equilibrium level of income. This is because businesses will produce more goods and services to meet the higher demand, leading to an increase in income for factors of production.
Conclusion:
Therefore, on account of an injection of aggregate demand, the equilibrium level of income increases. This is a key concept in macroeconomics to understand how changes in spending can impact the overall level of income in an economy.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer?
Question Description
On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer?.
On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer?.
Solutions for On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice On account of an injection of aggregate demand, the equilibrium level of incomea)Increasesb)Decreasesc)Remains constantd)None of theseCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup