Question

11 explain the determinants of planned consumption what will cause a shift in the consumption function...

11 explain the determinants of planned consumption what will cause a shift in the consumption function

12 how is the equilibrium national income {output} determined? explain using the Keynesian cross

13 derve the aggregate demand from the equilibrium level of income or output

22 briefly discuss the domestic agricultural policies which provide food security and stabilize the agricultural market

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Ans11) the upward shift of the consumption function is determined by the increase in real wealth. This increase consumers purchase power and they will consume more. An increase in stock and bond prices will make holders of the assets wealthier, and they would be likely to increase their consumption

The downward shift of the consumption function is determined by reduction in real wealth and reduction in consumer confidence. Shifts in the consumption function is also determined by the changes in expectations

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