Download App

Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsDetermination of Income and Employment3 Marks
Question
Justify the following statement, with valid reason.
‘‘Ex-ante Aggregate Demand is always equal to Ex-ante Aggregate Supply.’’
✓

Answer

Ex-ante Aggregate Demand is equal to Ex-ante Aggregate Supply only when the economy is in equilibrium. At under-employment equilibrium level, when Ex-ante Aggregate Demand falls short of Ex-ante Aggregate Supply, it will lead to accumulation of unplanned inventories. Hence the producer will reduce employment leading to reduction in output and income till the two forces becomes equal to each other and vice versa

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Determination of Income and Employment→Determination of Income and Employment — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Excess money supply is necessary for rapid economic development but it creates inflationary situation. Write any two fiscal measures to control inflationary situation.
→
Distinguish between real and nominal GDP. Which of these is a better indicator of economic welfare?
→
An economy is in equilibrium. Find investment expenditure: 
National Income = 1,000
Autonomous consumption = 100
Marginal Propensity to consume = 0.8
→
Giving reason, classify the into intermediate or final goods.Purchase of pulses by a consumer.
→
What type of data is required to measure National Income at each of the three phases of circular flow?
→
Classify the into durable, non-durable, semi-durable or service.
Visit of a physician.
→
Outline the steps taken in deriving Consumption Curve from the Saving Curve. Use diagram.
→
Find consumption expenditure from the following:
Autonomous consumption = ₹ 100
Marginal Propensity to Consume = 0.70
National Income = ₹ 1,000
→
Define deflationary gap.
→
Explain the meaning of Managed Floating Exchange Rate.
→