Due to weakening of global economic activity, level of aggregate demand ___________ in the economy. Option 1: Increases Option 2: Decreases Option 3: Remains constant Option 4: First increases and then decreases

The answer is 'Decreases'. View full solution:

CUET Economics - Due to weakening of global economic activity, level of aggregate demand ___________ in the economy. | PYQs + Solutions

CUET Economics 2025 3 June Shift 1

Macro

Easy

Increases

Decreases

Remains constant

First increases and then decreases

✅ Correct Option: 2

Related questions:

15 May Shift 1

Given that in an economy, consumption function is

C = 80 + 0.80Y and autonomous investment (I) = 120,

Match List-I with List-II

List-I	List-II
(A) Equilibrium level of income	(I) 400
(B) Break-even point	(II) 120
(C) Investment multiplier	(III) 5
(D) Value of savings at equilibrium	(IV) 1000

Choose the correct answer from the options given below:

13 May Shift 2

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called:

30 May Shift 1

What will be the effect on Aggregate Demand when MPC decreases ?