If all the peop<= in economy increase savings, what will happen in the economy ?

Increase in consumption is cal<=d Paradox of thrift

CUET Economics - If all the people in economy increase savings, what will happen in the economy ? | PYQs + Solutions

CUET Economics 2023 30 May Shift 1

Macro

Easy

The total value of savings in economy will not increase, it will either decline or remain unchanged

Increase in consumption is called Paradox of thrift

Aggregate demand will increase

Producers decide to increase the product

✅ Correct Option: 1

Related questions:

13 May Shift 1

With keeping tax rate (T) constant if government purchases(G) increase, then arrange the following statement considering the effect on total income and output.

(A) Rise in Plan Aggregate expenditure.

(B) Government runs a deficit when G exceeds T.

(D) Aggregate demand schedule shifts upward.

Choose the correct answer from the options given below:

27 May Shift 2

______ level of income is that level of income where all the factors of production are fully employed in the production process.

26 May Shift 2

Arrange the following in chronological order, starting from the earliest.

(A) Publishing of 'An inquiry into the Nature and Cause of the Wealth of Nations'.

(B) The Great Depression.

(D) Publishing of 'General Theory of Employment, Interest and Money'.

Choose the correct answer from the options given below:

CUET Economics 2023 30 May Shift 1 PYQs

Keyboard Shortcuts