Equilibrium of Income, Consumption And Investment - SS3 Economics Past Questions and Answers - page 1
1
In the equation Y = C + I, what does Y represent?
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A
Consumption expenditure
B
Investment expenditure
C
The level of income in the economy
D
The level of savings in the economy
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2
Which of the following factors can affect the consumption function in the equation C = f(Y)?
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A
Interest rates
B
Government policy
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C
Business investment decisions
D
International trade
3
What is the equilibrium condition in the equation Y = C + I?
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A
The level of output is equal to the level of expenditure
B
The level of consumption is equal to the level of investment
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C
The level of income is equal to the level of savings
D
The level of investment is equal to the level of savings
4
What is the difference between Y and f(Y) in the equation Y - f(Y) = I?
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A
The difference between income and investment
B
The difference between consumption and investment
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C
The difference between income and consumption
D
The difference between income and savings
5
How is the equilibrium level of income determined in the economy?
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A
By trial and error
B
By using graphical analysis
C
By using calculus
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D
All of the above
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