Practice Introduction - 2.1 | Chapter 2: Theory of Income and Employment | ICSE Class 12 Economics
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define aggregate demand.

πŸ’‘ Hint: Think about total consumption, investment, government spending, and net exports.

Question 2

Easy

What does the term equilibrium refer to in economics?

πŸ’‘ Hint: Remember the balance point in a scale.

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 aggregate demand?

  • Total goods and services demanded
  • Only consumer spending
  • Only government spending

πŸ’‘ Hint: Think broadly about all types of economic demand.

Question 2

The Classical view suggests that economies are self-correcting.

  • True
  • False

πŸ’‘ Hint: Remember that Classical theory believes in market mechanics.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

How would a sudden increase in consumer confidence in the economy affect aggregate demand and the equilibrium? Discuss the potential long-term implications.

πŸ’‘ Hint: Consider the ripple effects of increased economic activity.

Question 2

Evaluate how a fiscal stimulus package during a recession might impact the multiplier effect within the economy. What are the potential risks?

πŸ’‘ Hint: Think about how increased spending can lead to unforeseen consequences if the economy is pushed too hard.

Challenge and get performance evaluation