Page 74 - DECO402_Macro Economics

Unit-7: Theory of Consumption Function

7.4 Keywords Notes

y Time Series-Moment chain.
y Cross-Section- sample slice.

7.5 Review Questions

1. What do you understand by the consumption function principle of Keynes?
2. What is the meaning of Absolute income hypothesis?
3. Critically evaluate the absolute income hypothesis.

Answers: Self Assessment

1. General Theory 2. consumption 3. absolute 4. (a)
5. (a) 6. (a) 7. False 8. True
9. True 10. True.

7.6 Further Readings

Books 1. Macroeconomics: Theory and Policy- H. L. Ahuja, S. Chand Publisher, 2010.

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