CUET Economics 2026 11th May Shift 1 PYQs

If aggregate demand changes, the equilibrium level of income changes. This can happen in any one or combination of the following situations:

(A) Change in consumption.

(B) Multiplier Effect.

(C) Substitute Effect.

(D) Change in Investment.

Choose the correct answer from the options given below:

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

When aggregate output is determined solely by the level of aggregate demand, the relation between aggregate supply and price is?