Assume a two sector economy in the above diagram, the initial demand curve AD1 shifts upward to AD2 due to : Option 1: Increase in average propensity to save Option 2: Increase in aggugate supply Option 3: Increase in marginal propensity to consume Option 4: Increase in autonomous investment

The answer is 'Increase in autonomous investment'. View full solution:

CUET Economics - Assume a two sector economy in the above diagram, the initial demand curve AD1 shifts upward to AD2 due to : | PYQs + Solutions

CUET Economics

Macro

Medium

Increase in average propensity to save

Increase in aggugate supply

Increase in marginal propensity to consume

Increase in autonomous investment

✅ Correct Option: 4

Related questions:

CUET Economics 2022 Slot 5

Match List - I with List - II.

List - I	List - II
(A) MPC (Marginal Propensity to Consume)	(I) $\frac{\Delta Y}{\Delta I}$
(B) MPS (Marginal Propensity to Save)	(II) $\frac{\Delta C}{\Delta Y}$
(C) K (Multiplier)	(III) C + I
(D) AD (Aggregate Demand)	(IV) $\frac{\Delta S}{\Delta Y}$

Choose the correct answer from the options given below :

30 May Shift 1

When consumer consumes a part of change in income, which of the following is true?

30 May Shift 2

When the aggregate output is determined solely by the level of aggregate demand. Then what it called?