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Economics · 2022 · 2 marks
Determination of Income and EmploymentAggregate Demand and its Components2 marksUnderstandvery short answer
CBSE 2022 · Region 2 · Set 1 · Q4
State and discuss any one component of Aggregate Demand in a two-sector economy.
State and discuss any one component of Aggregate Demand in a two-sector economy.
Marking-scheme solution
Consumption Expenditure (C) refers to total expenditure incurred by households and non-profit institutions on purchase of goods and services during an accounting year. There exists a positive relation between income and consumption expenditure, i.e., higher the income, higher shall be the consumption expenditure.
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CBSE Class 12 Economics past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.