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    WS 1 - Unit 3

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    0mega YT
    This document contains a 12 question worksheet on economics concepts related to determining income and employment levels. Specifically, it covers topics like calculating consumption and investment expenditures, defining deflationary gaps and involuntary unemployment, analyzing statements about aggregate supply and demand, working through investment and consumption multiplier models, deriving a consumption function from a savings function, and interpreting graphs of aggregate planned consumption and savings. Students are asked to work through calculations, define terms, analyze economic adjustments, and answer questions based on data and diagrams provided.

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    WS 1 - Unit 3

    Uploaded by

    0mega YT
    25 views3 pages
    This document contains a 12 question worksheet on economics concepts related to determining income and employment levels. Specifically, it covers topics like calculating consumption and investment expenditures, defining deflationary gaps and involuntary unemployment, analyzing statements about aggregate supply and demand, working through investment and consumption multiplier models, deriving a consumption function from a savings function, and interpreting graphs of aggregate planned consumption and savings. Students are asked to work through calculations, define terms, analyze economic adjustments, and answer questions based on data and diagrams provided.

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    WS 1- Unit 3

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    This document contains a 12 question worksheet on economics concepts related to determining income and employment levels. Specifically, it covers topics like calculating consumption and investment expenditures, defining deflationary gaps and involuntary unemployment, analyzing statements about aggregate supply and demand, working through investment and consumption multiplier models, deriving a consumption function from a savings function, and interpreting graphs of aggregate planned consumption and savings. Students are asked to work through calculations, define terms, analyze economic adjustments, and answer questions based on data and diagrams provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views3 pages

    WS 1 - Unit 3

    Uploaded by

    0mega YT
    This document contains a 12 question worksheet on economics concepts related to determining income and employment levels. Specifically, it covers topics like calculating consumption and investment expenditures, defining deflationary gaps and involuntary unemployment, analyzing statements about aggregate supply and demand, working through investment and consumption multiplier models, deriving a consumption function from a savings function, and interpreting graphs of aggregate planned consumption and savings. Students are asked to work through calculations, define terms, analyze economic adjustments, and answer questions based on data and diagrams provided.

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    OISG CBSE Grade 12

    Worksheet: Unit 3: Determination of Income and Employment


    Subject : Economics

    1) From the following data, calculate the


    a) Consumption Expenditure
    b) Investment Expenditure
    Particulars Amount (Rs)
    Equilibrium level of income 5,000
    Autonomous consumption 500
    Marginal propensity to save 0.4

    2) What is meant by Deflationary Gap? State any two measures to


    correct the situation of deflationary gap.

    3) Define involuntary unemployment.

    4) Defend or refute the given statements with valid reasons.


    a) “Ex-ante Aggregate Demand is always equal to Ex-ante Aggregate
    Supply.”
    b) “Ex-ante Savings and Ex-ante Investments are always equal.”

    5) In an economy, if initial investments are increased by Rs.100


    crores, discuss the working of investment multiplier presuming
    MPC is 0.8

    6) If the Saving function is S= (-)10 + 0.2 Y, derive Consumption


    function from the given saving function?

    7) Suppose in a hypothetical economy, the income rises from Rs. 500


    crores to Rs. 600 crores. As a result, the consumption expenditure
    rises from Rs.400crores to Rs.500 crores. MPC in such a case
    would be _____
    a) 0.8
    Page 1 of 3
    b) 0.4
    c) 1.0
    d) 0.6

    8) Discuss the working of the adjustment mechanism if, AD is greater


    than AS.
    9) Answer the following questions based on the data given below:
    Planned investment = 100 crore
    C = 50 + 0.5Y

    a) Determine the equilibrium level of income.


    b) Calculate the saving and consumption expenditure at
    equilibrium level of National income.

    10) Based on following information, identify whether the


    economy is in equilibrium or not:
    a) Autonomous consumption and Investment expenditure- 500 crores
    b) MPS – 0.2
    c) National Income- 4,000crores
    11) In an economy, the aggregate demand function is given by:
    AD= 160 + 0.8Y
    The full employment level of income is Rs 1,000 crores. Calculate the
    equilibrium level of income and the increase in investment required to
    reach the full employment level.

    Page 2 of 3
    12) Answer the following questions based on given figure:

    a) What does the shaded area indicate?


    b) What is the significance of point B?
    c) At which level of income, APC will be equal to one and why?
    d) What is the significance of saving curve above the point B.
    e) At which level of income, APS will be equal to zero and why?
    f) What does OA signify with respect to consumption function.

    Page 3 of 3

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