Practice Determinants of Aggregate Demand - 2.2.4 | Chapter 2: Theory of Income and Employment | ICSE Class 12 Economics
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2.2.4 - Determinants of Aggregate Demand

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What do we mean by aggregate demand?

💡 Hint: Consider the equation involving consumption, investment, and government spending.

Question 2

Easy

List one factor that affects consumption.

💡 Hint: Think about what households consider when spending.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is included in the formula for aggregate demand?

  • C + I + G + (X - M)
  • C + I - G + M
  • C + R + G + (X + M)

💡 Hint: Consider the components of economic activities.

Question 2

True or False: A decrease in government spending will always lead to a decrease in aggregate demand.

  • True
  • False

💡 Hint: Think about the broader economic context.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Evaluate how a recession can alter the determinants of aggregate demand. Provide examples.

💡 Hint: Think about the interconnectedness of economic factors during downturns.

Question 2

Discuss the potential impact of a strong currency on a country’s economic growth, particularly focusing on net exports.

💡 Hint: Consider the balance between imports and exports when discussing overall economic health.

Challenge and get performance evaluation