If the level of effective demand is much below the level of full employment equilibrium then which situation will appear in the economy ? Option 1: Full employment equilibrium Option 2: Under employment equilibrium Option 3: Beyond full employment equilibrium Option 4: Excess demand

The answer is 'Under employment equilibrium'. View full solution:

CUET Economics - If the level of effective demand is much below the level of full employment equilibrium then which situation will appear in the economy ? | PYQs + Solutions

CUET Economics

Macro

Easy

Full employment equilibrium

Under employment equilibrium

Beyond full employment equilibrium

Excess demand

✅ Correct Option: 2

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A hypothetical economy tends to save only 25% of its additional income. How much additional income would be generated by it if the investment is increased by 50 crores?

3 June Shift 2

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(A) It can be obtained by vertically adding the consumption and investment function.

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(D) It shows ex ante demand.

Choose the correct answer from the options given below:

CUET Economics PYQs

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