CUET Economics - Effective demand principle situation occurs when _________ | PYQs + Solutions

CUET Economics 2025 22 May Shift 1

Macro

Medium

Aggregate supply is only determinant of total output.

Aggregate supply is perfectly inelastic.

Aggregate demand is only determinant of total output.

Aggregate demand and supply determine the total output.

✅ Correct Option: 3

Related questions:

11th May Shift 2

Arrange the following in correct sequence with respect to the change in the demand for final goods and services:

A. Fall in employment in the economy.

B. Ex ante Aggregate Demand for final goods falls short of the Ex ante Output of final goods.

C. Fall in the income level in the economy.

D. Unintended accumulation of inventories.

Choose the correct answer from the options given below:

11th May Shift 2

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. Marginal Propensity to Save (MPS)	I. Consumption per unit of income.
B. Average Propensity to Save (APS)	II. Savings per unit of income.
C. Marginal Propensity to Consume (MPC)	III. Change in consumption per unit change in income.
D. Average Propensity to Consume (APC)	IV. Change in savings per unit change in income.

Choose the correct answer from the options given below:

28 May Shift 2

Determination of income and employment of a two-sector model is done by:

(A) Ex-ante aggregate demand for final goods.

(B) Ex-post aggregate demand for final goods.

(D) Constant rate of interest.

Choose the correct answer from the options given below:

CUET Economics 2025 22 May Shift 1 PYQs