CUET Economics 2025 22 May Shift 1 PYQs

In an imaginary economy, the planned spending falls short of planned output at a certain level of employment. Arrange the following consequences of the same in sequential order.

(A) Unintended accumulation of inventories.

(B) The employment level falls.

(C) The output and income fall and the equilibrium is restored.

(D) Producers plan to produce less in the next period.

Choose the correct answer from the options given below:

If the Marginal Propensity to Save (MPS)=0.2.The Value of the multiplier will be-

When the marginal propensity to consume is given as $0.5$. What is the tax multiplier?