CUET Economics PYQs

Suppose, following data is presented, for an imaginary economy:

Autonomous Consumption = ₹ 100 crore

Marginal Propensity to Consume = 0.6

Investment = 200 crore.

Identify which of the following is the correct value of national income?

Arrange the following statements in chronological order in respect to the increase in the proportion of income people save.

(A) Marginal propensity to consume decreases.

(B) The level of income decreases.

(C) The amount of savings remains the same.

(D) The aggregate demand curve shifts downwards.

Choose the correct answer from the options given below:

1. (A), (B), (C), (D)
2. (A), (C), (B), (D)
3. (B), (A), (D), (C)
4. (A), (D), (B), (C)

When autonomous investment increases in a two-sector model, then.

1. The aggregate demand curve shifts upwards.
2. Output/GDP increases by the same magnitude as the change in investment.
3. Autonomous expenditure increases by the same magnitude as the change in investment.
4. The consumption curve shifts upwards.