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CUET Economics 2025 PYQs22 May Shift 2. Free, no login required.

Macro

past year questions, CUET Economics 2025 22 May Shift 2

Income & Employment

past year questions, Macro, CUET Economics 2025 22 May Shift 2

Medium

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:

Solution

✅ Correct Option: 2

Option 1 -> Includes effective demand, which is not a component but rather represents equilibrium aggregate demand.

Option 2 -> Correctly identifies the three main components: ex-ante consumption (planned consumption), ex-ante investment (planned investment), and government spending.

Option 3 -> Incorrectly includes effective demand as a component of aggregate demand.

Option 4 -> Excludes ex-ante consumption which is a primary component of aggregate demand.

Hence, Option 2: (A), (B) and (C) only -> Aggregate demand for final goods is composed of ex-ante (planned) consumption, ex-ante (planned) investment, and government spending. In an open economy, net exports would also be included. Effective demand is not a component of aggregate demand; rather, it represents the level of aggregate demand at which it equals aggregate supply in equilibrium. The ex-ante terms emphasize planned expenditures that make up aggregate demand. -> correct

Related questions:

2026: 11 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:

2024: 16 May

During festive season, the currency deposit ratio

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The investment multiplier is equal to which of the following?

2025: 3 June Shift 2

The study of macroeconomics usually simplifies the analysis of how the country's total ouput and the level of employment are related to.

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How much consumption will increase when income increases by Rs. 5000 at given marginal propensity to consume of 0.60.

  1. Increase in consumption= Rs. 5000
  2. Increase in consumption= Rs. 4000
  3. Increase in consumption= Rs. 3000
  4. Increase in consumption= Rs. 2000

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-ILIST-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:

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