Equilibrium of Income, Consumption And Investment - SS3 Economics Past Questions and Answers - page 1
In the equation Y = C + I, what does Y represent?
Consumption expenditure
Investment expenditure
The level of income in the economy
The level of savings in the economy
Which of the following factors can affect the consumption function in the equation C = f(Y)?
Interest rates
Government policy
Business investment decisions
International trade
What is the equilibrium condition in the equation Y = C + I?
The level of output is equal to the level of expenditure
The level of consumption is equal to the level of investment
The level of income is equal to the level of savings
The level of investment is equal to the level of savings
What is the difference between Y and f(Y) in the equation Y - f(Y) = I?
The difference between income and investment
The difference between consumption and investment
The difference between income and consumption
The difference between income and savings
How is the equilibrium level of income determined in the economy?
By trial and error
By using graphical analysis
By using calculus
All of the above