CUET Economics 2025 3 June Shift 2 PYQs

Arrange the following statements in chronological order in respect to the increase in the proportion of income people save.

(A) Marginal propensity to consume decreases.

(B) The level of income decreases.

(C) The amount of savings remains the same.

(D) The aggregate demand curve shifts downwards.

Choose the correct answer from the options given below:

1. (A), (B), (C), (D)
2. (A), (C), (B), (D)
3. (B), (A), (D), (C)
4. (A), (D), (B), (C)

The impact of the above situation under the Keynesian theory of income and employment in an economy is?

1. Decrease in income, output and employment.
2. Decrease in nominal income, but no change in real output.
3. Increase in income, output and employment.
4. No change in output or employment but increase in general price level.

Aggregate demand for final goods consists which of the following?

(A) Ex-ante consumption.

(B) Ex-ante Investment.

(C) Government spending.

(D) Effective demand.

Choose the correct answer from the options given below: