If there is no government and no foreign trade, then : Option 1: G + T = M - X > I Option 2: G + T = M - X = I Option 3: G - T = M - X = 0 Option 4: G - T = M - X > I

Answer: G - T = M - X = 0. Solution: G + T = M - X > I -> means more imports than exports G + T = M - X = I -> shows balance in trade G - T = M - X = 0 -> implies no trade deficit -> balanced economy G - T = M - X > I -> indicates higher exports -> surplus exists Correct answer is option 3 -> no government and no foreign trade -> balanced economy with no trade deficit.

Macro

Income & Employment

Hard

If there is no government and no foreign trade, then :

G + T = M - X > I

G + T = M - X = I

G - T = M - X = 0

G - T = M - X > I

✅ Correct Option: 3

G + T = M - X > I -> means more imports than exports
G + T = M - X = I -> shows balance in trade
G - T = M - X = 0 -> implies no trade deficit -> balanced economy
G - T = M - X > I -> indicates higher exports -> surplus exists

Correct answer is option 3 -> no government and no foreign trade -> balanced economy with no trade deficit.

2025: 3 June Shift 1

The impact of the above situation under the Keynesian theory of income and employment in an economy is?

2025: 2 June Shift 1

When income is more than consumption, then value of Average Propensity to Save (APS) is.

2025: 28 May Shift 1

Arrange the following as per the theory of the 'Paradox of Thrift':

(A) Marginal Propensity to consume decreases.

(B) Amount of savings decreases.

(D) Equilibrium level of income decreases.

Choose the correct answer from the options given below:

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

2023: 28 May Shift 2

At a particular price level, when aggregate demand for final goods equals aggregate supply of final goods, the product market reaches to its __________.

2026: 13 May Shift 2

The level of consumption, which is independent of income, is called ?

2025: 31 May Shift 1

Match List-I with List-II

List-I	List-II
(A) An increase in proportional taxes	(I) Decreases consumption by MPC times the change in taxes.
(B) An increase in lump-sum taxes	(II) Automatic Stabilizer.
(C) Proportional income tax	(III) Aggregate demand curve shift inwards.
(D) Lump sum taxes	(IV) Do not depend upon income.

Choose the correct answer from the options given below:

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

If there is no government and no foreign trade, then :

Solution

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