CUET Economics - If the supply of final goods is assumed to be infinitely elastic at constant price over a short period of time, aggregate output is determined solely by the value of aggregate demand. This statement is called _________ Principle. | PYQs + Solutions

CUET Economics

Macro

Medium

Aggregate supply

Aggregate demand

Effective demand

Perfectly inelastic demand

✅ Correct Option: 3

Related questions:

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:

28 May Shift 2

In the consumption equation, the slope of the consumption function is represented as:

29 May Shift 1

If Multiplier is 2.5,how much investment will be required to generate additional income of 1000 crores?

CUET Economics PYQs