The impact of the above situation under the Keynesian theory of income and employment in an economy is? Option 1: Decrease in income, output and employment. Option 2: Decrease in nominal income, but no change in real output. Option 3: Increase in income, output and employment. Option 4: No change in output or employment but increase in general price level.

The answer is 'Decrease in income, output and employment.'. View full solution:

CUET Economics - The impact of the above situation under the Keynesian theory of income and employment in an economy is? | PYQs + Solutions

CUET Economics 2025 3 June Shift 1

Macro

Medium

Decrease in income, output and employment.

Decrease in nominal income, but no change in real output.

Increase in income, output and employment.

No change in output or employment but increase in general price level.

✅ Correct Option: 1