Frequently Asked Questions - Government Budget and the Economy Commerce Notes | EduRev

Economics Class 12

Commerce : Frequently Asked Questions - Government Budget and the Economy Commerce Notes | EduRev

The document Frequently Asked Questions - Government Budget and the Economy Commerce Notes | EduRev is a part of the Commerce Course Economics Class 12.
All you need of Commerce at this link: Commerce

FREQUENTLY ASKED CBSE BOARD QUESTIONS

1. Define full employment?

2. What do you mean by Aggregate Demand? 

3. Write any two components of aggregate demand?     

4. Define Aggregate Supply?    

5. When APC is 0.6, what is the value of APS?    

6. If the rate of MPC is 0.75 find the value of multiplier?     

7. Define investment multiplier?           

8. What are the conditions for equilibrium level of income and employment? 

9. What is meant by excess demand?       

10. Define inflationary gap.  

11. Define deficient demand?    

12. Define underemployment equilibrium?    

13. What are the monetary measures to correct excess demand? 

14. State the fiscal measures to correct excess demand?       

15. Explain any two monetary and fiscal measures to correct deficient demand?      

16. Define investment multiplier. What is the relationship between MPC and multiplier?  

17. State the components of AD. Explain any one.     

18. Explain investment multiplier with the help of an example.   

19. Derive saving function from consumption function.  

20. State the Keynesian psychological law of consumption function.   

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