CUET Economics 2025 3 June Shift 1 PYQs

A perfectly elastic aggregate supply curve implies that:

(A) There is fuller utilization of resources in the economy.

(B) There is unemployment of resources in the economy.

(C) There is excess capacity in the economy.

(D) Aggregate demand is less in the economy.

Choose the correct answer from the options given below:

In a hypothetical economy, the consumption function is given as C = 100 + 0.75Y. The autonomous investment in the economy is 200 crores. The equilibrium level of income would be______?

In the excess demand condition, which of the following measures may be adopted in the economy to control it?

(A) Increase in repo rate.

(B) Decrease in reverse repo rate.

(C) Sale of government securities in the open market.

(D) Increase in subsidies.

Choose the correct answer from the options given below: