Match List - I with List - II., List - I, List - II, (A) MPC (Marginal Propensity to Consume), (I) ( Y)/( I), (B) MPS (Marginal Propensity to Save), (II) ( C)/( Y), (C) K (Multiplier), (III) C + I, (D) AD (Aggregate Demand), (IV) ( S)/( Y), Choose the correct answer from the options given below : Option 1: (A) - (I), (B) - (IV), (C) - (III), (D) - (II) Option 2: (A) - (II), (B) - (IV), (C) - (III), (D) - (I) Option 3: (A) - (II), (B) - (IV), (C) - (I), (D) - (III) Option 4: (A) - (I), (B) - (II), (C) - (IV), (D) - (III)

Answer: (A) - (II), (B) - (IV), (C) - (I), (D) - (III). Solution: MPC = ( C)/( Y) (II). MPS = ( S)/( Y) (IV). Multiplier K = ( Y)/( I) (I). Aggregate Demand AD = C + I (III). Hence A-II, B-IV, C-I, D-III.

Macro

Income & Employment

Medium

Match List - I with List - II.

List - I List - II
(A) MPC (Marginal Propensity to Consume) (I) $\frac{\Delta Y}{\Delta I}$
(B) MPS (Marginal Propensity to Save) (II) $\frac{\Delta C}{\Delta Y}$
(C) K (Multiplier) (III) C + I
(D) AD (Aggregate Demand) (IV) $\frac{\Delta S}{\Delta Y}$

Choose the correct answer from the options given below :

List - I	List - II
(A) MPC (Marginal Propensity to Consume)	(I) $\frac{\Delta Y}{\Delta I}$
(B) MPS (Marginal Propensity to Save)	(II) $\frac{\Delta C}{\Delta Y}$
(C) K (Multiplier)	(III) C + I
(D) AD (Aggregate Demand)	(IV) $\frac{\Delta S}{\Delta Y}$

(A) - (I), (B) - (IV), (C) - (III), (D) - (II)

(A) - (II), (B) - (IV), (C) - (III), (D) - (I)

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

✅ Correct Option: 3

MPC = $\frac{\Delta C}{\Delta Y}$ (II). MPS = $\frac{\Delta S}{\Delta Y}$ (IV). Multiplier K = $\frac{\Delta Y}{\Delta I}$ (I). Aggregate Demand AD = C + I (III). Hence A-II, B-IV, C-I, D-III.

2025: 16 May Shift 1

If there is an increase in investment by Rs100 in an economy, MPC = 0.9, choose the correct sequence with reference to the working of the investment multiplier.

(A) Producers increase their planned output further by (0.9)10, the income of the economy goes up by (0.9)10 and consumption demand increases further by (0.9)² 10.

(B) This process goes on, round after round.

(D) The total increment in the income will be 1000.

Choose the correct answer from the options given below:

2025: 3 June Shift 2

The aggregate demand function shows the total demand for goods and services at each level of income. The graphical representation of the aggregate demand function will have which of the following features?

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

(B) It is parallel to the consumption function i.e., they have the same slope c.

(D) It shows ex ante demand.

Choose the correct answer from the options given below:

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. Excess Demand	I. Factors of production; willing to work but not able to get the work.
B. Voluntary unemployment	II. It leads to a decline in prices in the long run.
C. Deficient Demand	III. It leads to a rise in prices in the long run.
D. Under employment	IV. Factors of production are able but not willing to work.

Choose the correct answer from the options given below:

2023: 20 June Shift 1

Equilibrium in product market achieved when.

2025: 31 May Shift 1

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.

(D) The aggregate demand curve shifts downwards.

Choose the correct answer from the options given below:

(A), (B), (C), (D)
(A), (C), (B), (D)
(B), (A), (D), (C)
(A), (D), (B), (C)

2025: 31 May Shift 1

Among the following, what is assumed as the appropriate justification for taking the price level as fixed?

An economy with unskilled workforce.
An economy having scarcity of resources.
An economy with excess use of resources.
An economy with unused resources.

Solution

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