Macro

Income & Employment

Medium

Calculate the different values of multiplier from the given consumption functions and arrange them in increasing order.

A. C = 10 + 0.8Y

B. C = 12 + 0.6Y

C. C = 14 + 0.5Y

D. C = 16 + 0.2Y

Choose the correct answer from the options given below:

D, C, B, A

A, B, C, D

B, A, D, C

C, B, D, A

✅ Correct Option: 1

Multiplier $k=\dfrac{1}{1-MPC}$ . A: MPC 0.8 $\Rightarrow$ k=5. B: MPC 0.6 $\Rightarrow$ k=2.5. C: MPC 0.5 $\Rightarrow$ k=2. D: MPC 0.2 $\Rightarrow$ k=1.25. Increasing order of multiplier values: D(1.25), C(2), B(2.5), A(5).

2025: 3 June Shift 1

The cause of the above situation is?

2025: 13 May Shift 2

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.

(D) Change in Investment.

Choose the correct answer from the options given below:

2025: 29 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Ex-post investment	(I) AD function shifts upward
(B) Investment multiplier	(II) Planned Investment + Unplanned Investment
(C) Ex ante aggregate demand	(III) 1/1- MPC
(D) Owing to increase in investment	(IV) $I = c + cY$

Choose the correct answer from the options given below:

2025: 3 June Shift 2

The aggregate demand function shows the total demand for goods and services at each level of income. The graphical representation of the aggregate demand function will have which of the following features?

(A) It can be obtained by vertically adding the consumption and investment function.

(B) It is parallel to the consumption function i.e., they have the same slope c.

(D) It shows ex ante demand.

Choose the correct answer from the options given below:

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.

2026: 21 May Shift 2

What is the expression for the investment multiplier?

Calculate the different values of multiplier from the given consumption functions and arrange them in increasing order. A. C = 10 + 0.8Y B. C = 12 + 0.6Y C. C = 14 + 0.5Y D. C = 16 + 0.2Y Choose the correct answer from the options given below:

Solution

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CUET Economics Past Year Questions (Topic-Wise)

Calculate the different values of multiplier from the given consumption functions and arrange them in increasing order.

A. C = 10 + 0.8Y

B. C = 12 + 0.6Y

C. C = 14 + 0.5Y

D. C = 16 + 0.2Y

Choose the correct answer from the options given below: