Macro

Income & Employment

Easy

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called .......................

Autonomous Investment.

Investment multiplier

Marginal propensity to consume

Marginal propensity to save

✅ Correct Option: 2

The investment multiplier is defined as the ratio of the total increase in equilibrium output (income) to the initial increase in autonomous expenditure: $\frac{\Delta Y}{\Delta A} = \frac{1}{1-c}$ , where $c$ is the marginal propensity to consume.

2025: 30 May Shift 1

At the equilibrium point when C=100+0.5 Y and I= 200, saving will be........................

2025: 3 June Shift 2

Match List-I with List-II

List-I	List-II
(A) Inventory	(I) Planned
(B) Consumption	(II) Actually happened
(C) Ex-ante	(III) Investment
(D) Ex-post	(IV) Household Income

Choose the correct answer from the options given below:

2025: 29 May Shift 1

Suppose in a hypothetical economy ,the income rises from ₹5000 crores to ₹6000 crores. As a result, the consumption expenditure rises from ₹4000 cores to ₹4600 crores. Then what will be the marginal propensity to consume?

2023: 1 June Shift 1

Match List - I with List - II.

	List - I (Curves)		List - II (Shape)
(A)	Aggregate demand curve	(I)	Upward sloping line with a positive intercept on y-axis
(B)	Aggregate supply curve	(II)	Parallel to x axis
(C)	Autonomous investment curve	(III)	45 degree line passing through the origin
(D)	Consumption function	(IV)	Parallel to consumption function

Choose the correct answer from the options given below :

2022: 10 Aug Shift 2

When consumption function starts from y axis, it indicates that ?

2025: 16 May Shift 1

At the short run equilibrium of income and employment, __________.

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called .......................

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)