CUET Economics 2025 26 May Shift 2 PYQs

Put the alternatives given below in the sequence in which they occur to reach the equilibrium level of out put given that aggregate demand falls short of aggregate supply.

(A) In this case, the firm has to run down existing inventories, which will lead to a fall in production and hence income.

(B) Stocks will be piling up in the warehouses, causing unintended accumulation of inventories.

(C) Ex- ante demand for final goods falls short of the output of final goods that the producers have planned to produce in a given year.

(D) process continues till Ex- ante demand for final goods equals to ex -ante output of final goods

Choose the correct answer from the options given below:

Suppose at the initial equilibrium of $Y^*$, there is an exogenous or autonomous shift in peoples' expenditure pattern – they suddenly become more thrifty.

What will be the sequential effect of the above on the economy?

(A) The sudden decline in MPC will imply a decrease in aggregate consumption spending and hence in aggregate demand.

(B) There emerges an excess supply in the economy, but that would mean a reduction in factor payments in the next round and hence a reduction in income.

(C) There is no change in the total value of savings.

(D) MPS of the economy increases, and hence MPC falls.

Choose the correct answer from the options given below:

What does breakeven point indicate ?

(A) MPS = 0

(B) APC = 1

(C) MPS = 1

(D) APS = 0

Choose the correct answer from the options given below :