CUET Economics 2025 3 June Shift 2 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:

______ level of income is that level of income where all the factors of production are fully employed in the production process.

In case of an underemployment equilibrium, which of the following alternative is not true?

1. Aggregate Demand = Aggregate Supply.
2. There exist an excess production capacity in the economy.
3. Resources are not fully and efficiently utilised.
4. Resources are fully and efficiently utilised.