CUET Economics 2025 27 May Shift 2 - Arrange the following statements about the effect of an increase in taxes on total income and output. (A) An increase in taxes decreases disposable income. (B) Aggregate demand schedule shifts downwards. (C) Aggregate expenditure changes by a fraction of tax deduction. (D) Equilibrium output decreases. | PYQs + Solutions

CUET Economics 2025 27 May Shift 2

Macro

Medium

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

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

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

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

✅ Correct Option: 2

Related questions:

3 June Shift 2

Match List-I with List-II

List-I	List-II
(A) Inventory	(I) Planned
(B) Consumption	(II) Actually happened
(C) Ex-ante	(III) Investment
(D) Ex-post	(IV) Household Income

Choose the correct answer from the options given below:

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:

13 May Shift 2

If aggregate demand changes, the equilibrium level of income changes. This can happen in any one or combination of the following situations:

(A) Change in consumption.

(B) Multiplier Effect.

(D) Change in Investment.

Choose the correct answer from the options given below:

CUET Economics 2025 27 May Shift 2 PYQs

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