Aggregate Demand and its Components

Is it necessary that equality between AD and AS is established at the full employment level?

The level of induced consumption in an economy depends on:

The level of induced consumption in an economy depends on:

The level of induced consumption in an economy depends on:

The level of induced consumption in an economy depends on:

What is ex-ante consumption? Distinguish between autonomous consumption and induced consumption.

Define full employment in an economy. Discuss the situation when aggregate demand is more than aggregate supply at full employment income level. 

An economy is in equilibrium. From the following data, calculate autonomous consumption.

An economy is in equilibrium. From the following data about an economy, calculate investment expenditure:

An economy is in equilibrium. Find 'autonomous consumption' from the following:

What is 'aggregate supply' in macroeconomics?

If autonomous consumption (APC) is greater than zero, it indicates that the national income of the economy will be 

Draw a straight line consumption curve. From it derivate a saving curve. Explain the process of derivation. Show in this diagram.

(a) The point at which the average propensity to consume is equal to one.

(b) Any point at which the average propensity to save is negative.

Outline the steps required to be taken in deriving saving curve from the given consumption curve. Use diagram.

OR

Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use diagram.

Explain the steps taken in derivation of the consumption curve from the saving curve. Use diagram.

OR

Given saving curve, derive consumption curve and state the steps in doing so. Use diagram.

Derive a straight line saving curve using the following consumption function: $C=20+0.6Y$. Presuming the income levels to be $Rs. 100, Rs. 200 and Rs. 300 crores$. Also, calculate that level of income where consumption is equal to income. 

What is meant by investment? Discuss the two types of investments.

Explain, in brief, the concept of ex-ante and ex-post saving and investment. Why are ex-ante saving and ex-ante investment not always equal to each other?

Give the meaning of propensity to save. Discuss, in brief, the two types of propensities to save.

If MPS is $0.3$ and the income increases from $Rs. 6000 crores$ to $Rs. 9000 crores$, what will be the additional consumption in the economy?