CUET Economics - With keeping tax rate (T) constant if government purchases(G) increase, then arrange the following statement considering the effect on total income and output. (A) Rise in Plan Aggregate expenditure. (B) Government runs a deficit when G exceeds T. (C) Equilibrium income level increased. (D) Aggregate demand schedule shifts upward. Choose the correct answer from the options given below: | PYQs + Solutions

CUET Economics 2025 13 May Shift 1

Macro

Hard

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

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

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

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

✅ Correct Option: 1

Related questions:

15 May Shift 1

Suppose at the initial equilibrium of $Y^*$ , there is an exogenous or autonomous shift in peoples' expenditure pattern – they suddenly become more thrifty.

What will be the sequential effect of the above on the economy?

(A) The sudden decline in MPC will imply a decrease in aggregate consumption spending and hence in aggregate demand.

(B) There emerges an excess supply in the economy, but that would mean a reduction in factor payments in the next round and hence a reduction in income.

(D) MPS of the economy increases, and hence MPC falls.

Choose the correct answer from the options given below:

30 May Shift 1

A perfectly elastic aggregate supply curve implies that:

(A) There is fuller utilization of resources in the economy.

(B) There is unemployment of resources in the economy.

(D) Aggregate demand is less in the economy.

Choose the correct answer from the options given below:

30 May Shift 1

Arrange the following steps in the correct sequence to explain the working of Multiplier.

(A) Increase in income and consumption.

(B) Increase in investment.

(D) Generation of additional income.

Choose the correct answer from the options given below:

CUET Economics 2025 13 May Shift 1 PYQs

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