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Question Practice

Which of the following statements is true about equilibrium in the two-sector model?

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MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Determination Of Income And Employment
Question Bank

Which of the following stateme...

Single Answer MCQ
Q-00089074

Which of the following statements is true about equilibrium in the two-sector model?

1

Prices fluctuate significantly

2

Inventory levels always remain constant

3

Ex Ante Supply equals Ex Ante Demand

4

Firms consistently lose revenue

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

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

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

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

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