Arrange the following steps in ascending order in respect to determination of equilibrium level of income in an economy as a result of change in autonomous expenditure: A. The output and aggregate demand will increase. B. In the economy autonomous investment increased by Rs. 10 Cr. C. The aggregate demand curve shifts in parallel upwards. D. The investment multiplier works in forward direction. Choose the correct answer from the options given below:

Question

Option 1: B, D, C, A

Option 2: B, C, A, D

Option 3: B, A, D, C

Option 4: C, B, D, A

AfterBoards · Accepted Answer

The answer is 'B, C, A, D'. View full solution:

List-I	List-II
(A) Marginal propensity to consume	(I) Change in savings per unit change in income.
(B) Marginal propensity to save	(II) Savings per unit of income.
(C) Average propensity to consume	(III) Change in consumption per unit change in income.
(D) Average propensity to save	(IV) Consumption per unit of income.

CUET Economics 2026 23rd May Shift 1 PYQs

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