If the government changes transfer payments (TR), autonomous spending (A) will change by? Option 1: ΔTR Option 2: c ΔTR Option 3: Δy/ΔTR Option 4: 1 - c ΔTR

The answer is 'c ΔTR'. View full solution:

CUET Economics - If the government changes transfer payments (TR), autonomous spending (A) will change by? | PYQs + Solutions

CUET Economics 2025 30 May Shift 2

Macro

Medium

$ΔTR$

$c ΔTR$

$\frac{Δy}{ΔTR}$

$1 - c ΔTR$

✅ Correct Option: 2

Related questions:

29 May Shift 2

Which one is not the component of a aggregate demand for final goods?

28 May Shift 2

Arrange the following statement in the context of the effect of an autonomous change in aggregate demand on income and output.

(A) When autonomous investment increases, the aggregate demand shifts in parallel upwards.

(B) Equilibrium level of income depends on aggregate demand.

(D) The output will be greater than the original output.

Choose the correct answer from the options given below:

13 May Shift 1

Level of employment is determined by which of the following?