Class XII

The level of equilibrium income is determined by
  1. AD and AS
  2. AD and Investment
  3. AD and Consumption
  4. AD and national income
MPS= 1+MPC. It is
  1. None of these
  2. TRUE
  3. Depends on their values
  4. 0
What is meant by investment
  1. Addition to the stock of capital goods
  2. Addition to the income
  3. Addition to the stock of unsold goods only
  4. Addition to the stock of raw materials only
APC+APS=
  1. 1.0
  2. 2
  3. 4
  4. 3
Multiplier tells us what will be the
  1. Final change in the income, as a result of change in investment
  2. Change in investment results in the change in income
  3. Final change in the consumption, as a result of change in investment
  4. Final change in the income, as a result of change in consumption
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