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12th Standard English Medium Economics Subject Theories of Employment and Income Creative 2 Mark Questions with Solution Part - I

Published on: 23/06/2021

QB365 provides detailed and simple solution for every Creative Questions in class 12 Economics Subject. It will helps to get more idea about question pattern in every Creative questions with solution.

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Std: 12th Standard - Economics

chapter: - Creative Questions

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Questions:

Generic 2

5 x 2 = 10

Write a note on “wage-price rigidity” Keynes.

What is Aggregate demand?

What are the assumptions of Say's Law of Market?

Write any two types of unemployment?

What are the four components of aggregate demand?

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Answers Key:

Generic 2

5 x 2 = 10

i. According to Keynes there is wageprice rigidity.
ii. In the real world it is not possible to reduce the wages on account of government policy and due to the existence of trade unions.
iii. So the wages are more or less rigid rather than flexible

The amount that households, firms, the governments and the foreign purchasers would like to spend on domestic output.

(i) Ceteris paribus (constant extraneous variables).
(ii) Existence of Normal Conditions.
(iii) Existence of a Laissez-faire Capitalist Economy.

(i) Seasonal unemployment
(ii) Frictional unemployment

(i) Consumption Demand
(ii) Investment Demand
(iii) Government Expenditure
(iv) Net Export (Export - Import)