CUET Economics - Aggregate output is determined solely by the level of aggregate demand. This is known as effective demand principle. Which of the following is not the assumptions behind this principle? | PYQs + Solutions

CUET Economics 2025 15 May Shift 1

Macro

Medium

Price of final goods is constant.

Interest rates are constant.

Aggregate supply is perfectly elastic.

Aggregate demand is perfectly elastic.

✅ Correct Option: 4

Related questions:

16 May Shift 1

Which of the following are components of aggregate demand?

(A) Autonomous Investment

(B) Autonomous Consumption

(D) Induced consumption

Choose the correct answer from the options given below:

27 May Shift 2

________ is the ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure of the economy.

13 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Marginal propensity to consume	(I) Change in savings per unit change in income.
(B) Marginal propensity to save	(II) Savings per unit of income.
(C) Average propensity to consume	(III) Change in consumption per unit change in income.
(D) Average propensity to save	(IV) Consumption per unit of income.

Choose the correct answer from the options given below:

CUET Economics 2025 15 May Shift 1 PYQs

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