AfterBoards Logo
Skip to main contentSkip to solution

CUET Economics 2025 PYQs30 May Shift 1. Free, no login required.

Macro

past year questions, CUET Economics 2025 30 May Shift 1

Income & Employment

past year questions, Macro, CUET Economics 2025 30 May Shift 1

Easy

Level of planned output coincides with planned expenditure when:

(AD = Aggregate Demand. AS= Aggregate Suplly)

Solution

✅ Correct Option: 1

Option 1: AD=AS -> This represents equilibrium where planned expenditure equals planned output.

Option 2: AD>AS -> Excess demand situation where planned expenditure exceeds planned output, leading to inventory depletion.

Option 3: AD < AS -> Excess supply situation where planned output exceeds planned expenditure, leading to inventory accumulation.

Option 4: Income is Zero -> This is not a relevant condition for equilibrium between planned output and expenditure.

Hence, Option 1: AD=AS -> In macroeconomic equilibrium, the level of planned output (Aggregate Supply) must equal the level of planned expenditure (Aggregate Demand). This is the point where the economy is in balance - what producers plan to produce exactly matches what consumers, businesses, and government plan to spend. At this equilibrium point, there is no unplanned inventory accumulation or depletion, and the economy has no inherent tendency to change output levels. This is a fundamental concept in Keynesian economics and represents the equilibrium level of national income. -> correct

Related questions:

2026: 21 May Shift 2

What are the equilibrium conditions in two-sector model?

2026: 19 May Shift 2

Arrange the values of the following in ascending order (lowest to highest).

A. Thus ,it causes AD and output to increase by an amount larger than initial increment

B. Consequently, AD line shift parallel upward

C. Suppose, the autonomous investment increases in the economy

D. There is an emergence of excess demand in the economy

Choose the correct sequence from the options given below:

2025: 29 May Shift 1

Arrange the following in correct sequence according to their occurance.

(A) Reduction in cash reserve ratio by the Reserve Bank.

(B) Involuntary unemployment situation in the economy.

(C) Increase in credit availability in the capital market.

(D) Aggregate demand falls short of aggregate supply, corresponding to full employment in the economy.

Choose the correct answer from the options given below:

2023: 11 June Shift 3

Find out correct one :

(A) MPC is the change in consumption per unit change in income

(B) MPS is the saving per unit of income

(C) APC is the consumption per unit of income

(D) APS is the change in saving per unit change in income

Choose the correct answer from the options given below :

2024: 16 May

Paradox of Thrift means :

2025: 22 May Shift 1

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:

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question

CUET Economics Past Year Questions (Topic-Wise)