CUET Economics 2025 29 May Shift 2 PYQs

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.

(C) The output and income fall and the equilibrium is restored.

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

Choose the correct answer from the options given below:

Which of the following statements are true:

(A). Average propensity to consume is the change in consumption per unit to change in income.

(B). Ex-ante depicts what has been planned.

(C). Ceteris paribus means 'other things remain equal'.

(D). Ex-post depicts what has actually happened.

Choose the correct answer from the options given below:

Aggregate output is determined solely by the level of aggregate demand. This is known as effective demand principle. Which of the following is not the assumptions behind this principle?