Given AD = C + I + CY, change in autonomous consumption will lead to : (A) Change in equilibrium level of income (B) Change in aggregate demand (C) Change in Investment (D) Change in aggregate demand and no change in equilibrium level of income (E) Change in marginal propensity to consume Choose the correct answer from the options given below :

Question

Option 1: (D) Only

Option 2: (A) and (B) Only

Option 3: (C) and (D) Only

Option 4: (B) and (E) Only

AfterBoards · Accepted Answer

The answer is '(A) and (B) Only'. View full solution:

	List - I (Curves)		List - II (Shape)
(A)	Aggregate demand curve	(I)	Upward sloping line with a positive intercept on y-axis
(B)	Aggregate supply curve	(II)	Parallel to x axis
(C)	Autonomous investment curve	(III)	45 degree line passing through the origin
(D)	Consumption function	(IV)	Parallel to consumption function

CUET Economics PYQs

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