Question Practice

If investment (I) is considered autonomous in a two-sector model, it means that it is:

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA

Single Answer MCQ

Q-00089068

Constant and not influenced by income

Variable based on consumer spending

Completely randomized

Dependent on government policies

Video Explanation

Watch Video Solution

Keep Practising

Students who asked this also explored

Continue with nearby questions to strengthen the same chapter concept while you still have the context fresh in mind.

Q1.

In a two-sector model, aggregate demand (AD) is defined as the sum of which two components?

Q2.

What does the variable 'Y' represent in the equation Y = C + I + cY?

Q3.

In the two-sector model, the term 'A' in the equation Y = A + cY represents what?

Q4.

If actual output (Y) exceeds planned aggregate demand (C + I), what happens in the economy?