Question:
Total consumption expenditure by households under Keynesian Economics is a combination of __________ and ________ .
Total consumption expenditure by households under Keynesian Economics is a combination of __________ and ________ .
Show Hint
Understand the distinction between autonomous and induced components in Keynesian economics to analyze expenditure functions.
Updated On: Jan 29, 2025
- Autonomous Consumption, Autonomous Investments
- Autonomous Investments, Induced Consumption
- Induced Investments, Autonomous Investments
- Autonomous Consumption, Induced Consumption
Hide Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Under Keynesian economics, total consumption expenditure is the sum of autonomous consumption (which does not depend on income) and induced consumption (which depends on income level). Together, they form the total expenditure in an economy.
Was this answer helpful?
0
0
Top Questions on Money and Inflation
- “During the colonial period the agricultural sector showed massive stagnation.” Do you agree with the given statement? Justify your answer with valid arguments.
- CBSE CLASS XII - 2024
- Economics
- Money and Inflation
- For a hypothetical economy, assume the government increased an infrastructural investment by Rs. 20,000 crore. 80% of additional income is consumed in the economy. Estimate the increase in income and the corresponding increase in consumption expenditure in the economy.
Increase in Income: Rs. 1,00,000 crore
Increase in Consumption Expenditure: Rs. 80,000 crore- CBSE CLASS XII - 2024
- Economics
- Money and Inflation
- CBSE CLASS XII - 2024
- Economics
- Money and Inflation
- “Under the liberalisation measures taken by the Government of India, Trade and Investment Policy reforms were extremely crucial.” Reject or support the given statement with valid arguments.
- CBSE CLASS XII - 2024
- Economics
- Money and Inflation
During the British rule, India’s foreign trade had various features except _________ .
- CBSE CLASS XII - 2024
- Economics
- Money and Inflation
View More Questions
Questions Asked in CBSE CLASS XII exam
- (b) If $2x^2 - 5xy + y^3 = 76$, then find $\frac{dy}{dx}$.
- CBSE CLASS XII - 2025
- Differentiation
- “If you want to test a man’s character, give him power.” Analyse the theme of The Tiger King in the light of the above quote. (The Tiger King)
- A coil has 100 turns, each of area \( 0.05 \, \text{m}^2 \) and total resistance \( 1.5 \, \Omega \). It is inserted at an instant in a magnetic field of \( 90 \, \text{mT} \), with its axis parallel to the field. The charge induced in the coil at that instant is:
- CBSE CLASS XII - 2025
- Electromagnetic induction
- A 1 cm segment of a wire lying along the x-axis carries a current of 0.5 A along the \( +x \)-direction. A magnetic field \( \vec{B} = (0.4 \, \text{mT} \hat{j}) + (0.6 \, \text{mT} \hat{k}) \) is switched on. The force acting on the segment is:
- CBSE CLASS XII - 2025
- Magnetic Force on a Current-Carrying Wire
- Two wires of the same material and the same radius have their lengths in the ratio 2:3. They are connected in parallel to a battery which supplies a current of 15 A. Find the current through the wires.
- CBSE CLASS XII - 2025
- Current electricity
View More Questions