CUET Economics 2025 3 June Shift 1 PYQs

If aggregate demand changes, the equilibrium level of income changes. This can happen in any one or combination of the following situations:

(A) Change in consumption.

(B) Multiplier Effect.

(C) Substitute Effect.

(D) Change in Investment.

Choose the correct answer from the options given below:

Which one of the following is correct formula for deriving the investment multiplier?

A. 1/(1 - MPC)

B. 1/MPS

C. 1/(1 - MPS)

D. (1 - MPC)/MPS

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____