What will be the effect on Aggregate Demand when MPC decreases ? Option 1: Aggregate Demand Decreases Option 2: Aggregate Demand Increases Option 3: It remains Constant Option 4: It neither decreases nor increases

The answer is 'Aggregate Demand Decreases'. View full solution:

CUET Economics - What will be the effect on Aggregate Demand when MPC decreases ? | PYQs + Solutions

CUET Economics 2023 30 May Shift 1

Macro

Easy

Aggregate Demand Decreases

Aggregate Demand Increases

It remains Constant

It neither decreases nor increases

✅ Correct Option: 1

Related questions:

28 May Shift 2

Given AD = C + I + CY, change in autonomous consumption will lead to :

(A) Change in equilibrium level of income

(B) Change in aggregate demand

(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 :

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$cY$
$\bar{C}$
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CUET Economics 2023 30 May Shift 1 PYQs

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