Question

Select the correct statement in the context of consumption as a component of the aggregate demand.
(A) Ex ante is the planned value of a variable as opposed to its actual value.
(B) Ex post is the actual or realised value of a variable as opposed to its planned value.
(C) Consumption changes at a constant rate the changes in income.
(D) A consumption function describes the relation between consumption and income.
Choose the correct answer from the options given below:

• A. (A), (B) and (C) only
• B. (A), (B) and (D) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Hint:

Ex ante is planned, ex post is realised, and the consumption function links consumption to income. Statement (C) is not accepted.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
We must pick the correct statements about consumption as a component of aggregate demand.

Step 2: Check (A):
Ex ante means the planned or expected value of a variable. This is true.

Step 3: Check (B):
Ex post means the actual or realised value of a variable. This is true.

Step 4: Check (C):
Consumption does not change at a constant rate with income in the way the statement says, and the NTA key does not accept it. So (C) is false.

Step 5: Check (D):
A consumption function describes the relation between consumption and income. This is true.

Step 6: Match with the options:
(A), (B) and (D) are correct, which is option 2.

Final Answer:
Statements (A), (B) and (D) are correct, which is option 2 (as per the NTA final answer key). \[ \boxed{\text{(A), (B) and (D) only}} \]