Question:
Which of the following statements is/are CORRECT under the Keynesian Cross (Fixed Price) Model?
Which of the following statements is/are CORRECT under the Keynesian Cross (Fixed Price) Model?
Updated On: Oct 1, 2024
- The product market and factor market independently determine the full-employment level of output.
- Output is determined in the product market by the aggregate expenditure.
- Money market determines the price level, given the quantity of money and the level of output.
- Employment is determined in the factor market by the output level determined in the product market.
Hide Solution
Verified By Collegedunia
The Correct Option is B, D
Solution and Explanation
The correct option is (B): Output is determined in the product market by the aggregate expenditure. and (D): Employment is determined in the factor market by the output level determined in the product market.
Was this answer helpful?
0
0
Top Questions on Behavioural and technological functions
- A firm has a production function that is homogenous of degree one given by $π = 2\sqrt{πΏπΎ}$, where π is quantity, πΏ is labour and πΎ is capital. The unit price of πΏ is Rs. 4 and the unit price of πΎ is Rs. 16. Assuming that there is zero fixed cost, the total cost (long run) of producing 10 units of π is Rs. (in integer).
- IIT JAM EN - 2024
- Macroeconomics
- Behavioural and technological functions
- Which of the following statements is/are CORRECT in the context of the Absolute Income Hypothesis?
- IIT JAM EN - 2023
- Macroeconomics
- Behavioural and technological functions
- Which of the following statements is NOT correct in the context of quantity theory of money?
- IIT JAM EN - 2022
- Macroeconomics
- Behavioural and technological functions
- An analyst at the Green Car Co. Ltd. estimated the following demand function for the electric vehicles it sells:
\(Q_E=0.75-1.5P_{E} +2.5P_F - 0.5P_B+3.2l\)
where \(Q_E\) = Number of electric vehicles (in thousand per year), \(P_E\) = Unit price of electric vehicle (Rs. in Lakh), \(P_F\) = Average unit price of vehicle using fossil fuels (Rs. in Lakh), \(P_B\) = Unit price of battery used in electric vehicle (Rs. in Lakh), \(l\) = Personal disposable income (Rs. in Lakh).
Let \(P_E\) = Rs. 6.5 Lakh, \(P_F\)= Rs. 4.5 Lakh, \(P_B\) = Rs. 0.5 Lakh and \(l\) = Rs. 10 Lakh. Then the income elasticity of demand (\(e_{Qgl}\)) and the cross price elasticity of demand (\(e_{Qgp_f}\)) satisfy- IIT JAM EN - 2022
- Macroeconomics
- Behavioural and technological functions
- The technical change in the endogenous growth model is endogenized by
- IIT JAM EN - 2022
- Macroeconomics
- Behavioural and technological functions
Questions Asked in IIT JAM EN exam
- Consider a Keynesian Cross Model with following features,
Consumption Function: C = C0 + b(Y-T)
Tax Function: T = T0 + tY
Income Identity: Y = C + I0 + G0
Where, C = Consumption; Y = Real Income; T = Tax; I = Investment;
G = Government Expenditure; b = Parameter; t = Tax Rate
(The subscript 0 (zero) indicates that the concerned variable is autonomous)
If b = 0.7 and t = 0.2, value of the Keynesian multiplier is ________ (round off to 2 decimal places).- IIT JAM EN - 2024
- Business cycles and economic models
- Using the following table,
Year Population of the Economy GDP of the Economy (in crore) 2010 20,000 25,000 2020 25,000 40,000
the average growth rate (compounded annually) of per capita GDP in an economy during the period 2010-2020 is ________ (in percent, round off to 2 decimal places).- IIT JAM EN - 2024
- Growth models
- GDPF = Gross Domestic Product at Factor Cost; GDPM = Gross Domestic Product at Market Price; NNPF= Net National Product at Factor Cost; C = Consumption; I = Investment; G = Government Expenditure; X = Export; M = Import; T = Tax; S = Saving; D = Depreciation; NIA = Net Income from Abroad
Which of the following expressions is/are CORRECT?- IIT JAM EN - 2024
- National Income Accounting
- Let a random variable X has mean $\mu_x$ and non-zero variance $ \sigma ^2 _x$, and another X random variable Y has mean $\mu_y$ and non zero variance $\sigma ^2 _y$. If the correlation Y coefficient between X and Y is $\rho$, then which of the following is/are CORRECT?
- IIT JAM EN - 2024
- Probability
- Consider two independent random variables: $X βΌ N(5, 4)$ and $Y~N(3, 2)$. If $(2X + 3Y)~N(\mu, \sigma ^2)$, then the values of mean ($\mu$) and variance ($\sigma ^2$) are
- IIT JAM EN - 2024
- Probability
View More Questions