CUET Economics PYQs

If aggregate demand changes, the equilibrium level of income changes. This can happen in any one or combination of the following situations:

(A) Change in consumption.

(B) Multiplier Effect.

(C) Substitute Effect.

(D) Change in Investment.

Choose the correct answer from the options given below:

Which of the following statements are true:

(A). Average propensity to consume is the change in consumption per unit to change in income.

(B). Ex-ante depicts what has been planned.

(C). Ceteris paribus means 'other things remain equal'.

(D). Ex-post depicts what has actually happened.

Choose the correct answer from the options given below:

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