Match List I with List II
LIST I (Concept under Theory of Income determination) LIST II (Meaning) A. Saving < Investment I. When AD<AS B. II. Under employment equilibrium C. National income will fall III. Planned inventory would fall below the desired level D. AD=AS at a point less than full employment IV. Multiplier
Choose the correct answer from the options given below:
Match List I with List II
| LIST I (Concept under Theory of Income determination) | LIST II (Meaning) |
|---|---|
| A. Saving < Investment | I. When AD<AS |
| B. | II. Under employment equilibrium |
| C. National income will fall | III. Planned inventory would fall below the desired level |
| D. AD=AS at a point less than full employment | IV. Multiplier |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 2
A-III: If Saving < Investment, planned inventory falls below desired level. B-IV: 1/(1-MPC) is the multiplier. C-I: AD < AS causes national income to fall. D-II: AD=AS below full employment is underemployment equilibrium.
Related questions:
2023: 29 May Shift 2
2025: 31 May Shift 1
2025: 21 May Shift 1