Macro

Income & Employment

Easy

When consumption function starts from y axis, it indicates that ?

Consumption is zero when income is zero

Consumption is positive when income is zero

Saving is negative when income is positive

Saving is positive when income is zero

✅ Correct Option: 2

If the consumption function starts from the y-axis (not the origin), it means at zero income consumption is still positive. This positive value represents autonomous consumption, financed by past savings or borrowings.

2025: 22 May Shift 2

"General Theory of Employment, Interest and Money" by John Maynard Keynes was written in?

2022: 16 July Shift 2

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. $\frac{1}{1-mpc}$	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:

2026: 31 May Shift 1

Find the incorrect option from the following?

2025: 15 May Shift 1

Given that in an economy, consumption function is

C = 80 + 0.80Y and autonomous investment (I) = 120,

Match List-I with List-II

List-I	List-II
(A) Equilibrium level of income	(I) 400
(B) Break-even point	(II) 120
(C) Investment multiplier	(III) 5
(D) Value of savings at equilibrium	(IV) 1000

Choose the correct answer from the options given below:

2025: 3 June Shift 1

The range of value of investment multiplier is always between _________ and _________.

2025: 2 June Shift 1

_____________ is the minimum level of consumption done at zero income level and is independent of income.

When consumption function starts from y axis, it indicates that ?

Solution

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