CUET Economics - In macroeconomic theory, which is not justification for taking the price level as fixed. | PYQs + Solutions

CUET Economics 2025 27 May Shift 2

Macro

Medium

Law of diminishing returns will not apply.

Assuming an economy with unused resources.

Additional output can be produced without increasing marginal cost.

When the quantity produced changes, price does vary.

✅ Correct Option: 4

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26 May Shift 2

In an imaginary economy, the planned spending falls short of planned output at a certain level of employment. Arrange the following consequences of the same in sequential order.

(A) Unintended accumulation of inventories.

(B) The employment level falls.

(D) Producers plan to produce less in the next period.

Choose the correct answer from the options given below:

30 May Shift 1

At the equilibrium point when C=100+0.5 Y and I= 200, saving will be........................

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A hypothetical economy tends to save only 25% of its additional income. How much additional income would be generated by it if the investment is increased by 50 crores?

CUET Economics 2025 27 May Shift 2 PYQs

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