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Economics · 2024 · 4 marks
Determination of Income and EmploymentDetermination of Income in Two-sector Model4 marksUnderstandshort answer
CBSE 2024 · Region 3 · Set 1 · Q13
Elaborate the two components of Aggregate Supply in a two-sector economy.
Elaborate the two components of Aggregate Supply in a two-sector economy.
Marking-scheme solution
In a two-sector economy, Aggregate Supply comprises of:
Consumption (C): It refers to the total value of final goods and services that the household sector is planning to buy, during a given period of time. There exists a direct relationship between Consumption (C) and Income (Y).
Savings (S): Savings is that part of income which is not consumed. There exists a direct relationship between Savings (S) and Income (Y).
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CBSE Class 12 Economics past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.