CUET Economics 2025 27 May Shift 2 PYQs

How much consumption will increase when income increases by Rs. 5000 at given marginal propensity to consume of 0.60.

1. Increase in consumption= Rs. 5000
2. Increase in consumption= Rs. 4000
3. Increase in consumption= Rs. 3000
4. Increase in consumption= Rs. 2000

In graphical representation, how is the aggregate demand function obtained?

In a hypothetical economy, the consumption function is given as C = 100 + 0.75Y. The autonomous investment in the economy is 200 crores. The equilibrium level of income would be______?