Macro

Income & Employment

Medium

Identify the statement that stands true during deficient demand :

(A) Actual output falls short of potential output

(B) Potential output falls short of actual output

(C) Actual demand is less than expected demand

(D) Expected demand is less than actual demand

Choose the correct answer from the options given below :

(D) only

(A) and (C) only

(A) and (B) only

(B) only

✅ Correct Option: 2

Deficient demand occurs when aggregate demand falls short of aggregate supply at full employment. This means actual output falls short of potential output (A) and actual demand is less than the expected (full employment) demand (C).

2025: 29 May Shift 2

If the marginal propensity to consume is 0.6. Then what will be the value of tax multiplier?

2026: 12 May Shift 1

Disposable income is -

2025: 16 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Average Propensity to Consume	(I) It is the savings per unit of income
(B) Marginal Propensity to Consume	(II) It is the consumption per unit of income
(C) Average Ppropensity to Save	(III) It is the change in savings per unit change in income
(D) Marginal Propensity to Save	(IV) It is the change in consumption per unit change in income.

Choose the correct answer from the options given below:

2026: 6 June Shift 1

When the consumption is changed as per the change in income level such consumption is known as:

2025: 3 June Shift 2

$C = 120 + 0.5Y$

$I = 20$

What is the equilibrium income?

2025: 21 May Shift 1

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?

Solution

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