Solve
Guides
You visited us 0 times! Enjoying our articles? Unlock Full Access!
Question
A Government Expenditure B Both (a) and (b) C Consumption D Net Exports
Open in App
Solution
Verified by Toppr
The aggregate demand in two sector economy only includes the expenditure made by the consumer sector and the producer sector. The expenditure by the government sector and net exports are not included in the two sector economy.
Was this answer helpful?
1
Similar Questions
Q
1
Which of the following is not a component of aggregate demand in a two-sector economy?
View Solution
Q
2
Which of these is a component of Aggregate demand ______________.
View Solution
Q
3
State whether the following statements are true or false.
1. Consumption expenditure is the only component of aggregate demand.
2. The difference between a country's exports and imports is termed as net earnings from foreign transactions.
3. Autonomous consumption is income elastic.
4. The equality between aggregate demand and aggregate supply determines the equilibrium level of employment.
5. At breakeven point Consumption (C) is equal to income (Y).
View Solution
Q
4
Consumption expenditure is the only component of aggregate demand.
View Solution
Q
5
State whether the following statements are True of False:
Consumption expenditure is the only component of aggregate demand.
View Solution
