CUET Economics 2025 31 May Shift 1 PYQs

The aggregate demand function shows the total demand for goods and services at each level of income. The graphical representation of the aggregate demand function will have which of the following features?

(A) It can be obtained by vertically adding the consumption and investment function.

(B) It is parallel to the consumption function i.e., they have the same slope c.

(C) It shows ex post demand.

(D) It shows ex ante demand.

Choose the correct answer from the options given below:

A producer plans to add Rs.200 worth of goods to her stock by the end of the year. However due to an unexpected fall in the demand for her goods she adds Rs.250 worth of goods. Her ex-ante investment was____ and ex post investment was____

Which of the following depicts the actual meaning of marginal propensity to save (MPS)?