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Determination of Income and Employment - Quiz

Class XII
Economics
Determination of Income and Employment
10 questions
MEDIUM

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1. What is the primary focus of the Keynesian theory of income determination?

Supply of money · Aggregate demand · Government intervention · Consumer preferences

2. In the context of income determination, what does 'aggregate supply' refer to?

Total output produced · Total income earned · Total consumption · Total investment

3. Which of the following is a component of aggregate demand?

Government spending · Wage rates · Interest rates · Taxation

4. What happens when aggregate demand exceeds aggregate supply?

Unemployment rises · Inflation occurs · Deflation occurs · Economic stability

5. In the short run, an increase in investment will lead to which of the following?

Decrease in income · Increase in employment · Decrease in aggregate demand · Increase in savings