CUET Economics 2026 23rd May Shift 1 PYQs

If the supply of final goods is assumed to be infinitely elastic at a constant price over a short period of time, aggregate output is determined solely by the value of aggregate demand. This is called.

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:

The saving function of a two sector economy is given as S=(-)100+0.2Y. The equilibrium level of income of this economy is 1000, then calculate the value of consumption at equilibrium?