CUET Economics 2026 31st May Shift 1 PYQs

Arrange the following statement in the context of the effect of an autonomous change in aggregate demand on income and output.

(A) When autonomous investment increases, the aggregate demand shifts in parallel upwards.

(B) Equilibrium level of income depends on aggregate demand.

(C) Excess demand emerges in the economy.

(D) The output will be greater than the original output.

Choose the correct answer from the options given below:

$C = 120 + 0.5Y$

$I = 20$

What is the equilibrium income?

If all the people of the economy increase the proportion of income they save, the total value of savings in the economy will not increase – it will either decline or remain unchanged. This result is known as the: