Which of the following is NOT a determinant of aggregate demand? MCQ with Answer and Explanation

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Which of the following is NOT a determinant of aggregate demand?

A. Government expenditure

B. Consumption expenditure

C. Technology level

D. Investment expenditure

Answer: Option C

Solution (By JKSSB Mock Tests)

Technology primarily affects aggregate supply. Aggregate demand is determined by consumption, investment, government spending and net exports.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Nairobi Package' of WTO was adopted in which year?

A. 2017

B. 2015

C. 2013

D. 2019

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Correct Answer: Option B

Explanation:
The Nairobi Package was adopted in 2015.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a major factor contributing to the growth of India's service sector?

A. Complete isolation from global markets

B. Only agricultural productivity growth

C. IT revolution, liberalisation and rising domestic demand

D. Decline in global demand for services

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Correct Answer: Option C

Explanation:
The rapid growth of India's services sector has been driven by the information technology boom, economic liberalisation, and expanding domestic and global demand for services.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is NOT a component of the current account of India's balance of payments?

A. Merchandise trade

B. Foreign direct investment

C. Invisibles (services, income, transfers)

D. Software exports

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Correct Answer: Option B

Explanation:
Foreign direct investment is recorded in the capital account. Merchandise trade, services (including software), income and transfers form the current account.

This question belongs to: Economy GK Economy Set 1

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