Match List-I with List-II
|
List-I |
List-II |
|
(A) Final goods market |
(I) $\bar A+ cY$ |
|
(B) Consumers demand |
(ΙΙ) $ΔY/ΔΑ$ |
|
(C) Investment multiplier |
(III) $\bar C+cY$ |
|
(D) Linear equation |
(IV) $a + bX$ |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A)-(I), (B)-(III), (C)-(II), (D)-(IV)
|
List-I |
List-II |
|
(A) Final goods market |
(I) $\bar A+ cY$ |
|
(B) Consumers demand |
(III) $\bar C+cY$ |
|
(C) Investment multiplier |
(ΙΙ) $ΔY/ΔΑ$ |
|
(D) Linear equation |
(IV) $a + bX$ |
In the final goods market, Aggregate Demand (AD) is represented by $\bar A+ cY$, where:
-
$\bar A$ = autonomous expenditure
-
cY = induced consumption
The consumption function is given by C = $\bar C+cY$ where:
-
$\bar C$ = autonomous consumption
-
cY = consumption dependent on income