Macro

Income & Employment

Medium

Arrange the following in correct sequence with respect to the change in the demand for final goods and services:

A. Fall in employment in the economy.

B. Ex ante Aggregate Demand for final goods falls short of the Ex ante Output of final goods.

C. Fall in the income level in the economy.

D. Unintended accumulation of inventories.

Choose the correct answer from the options given below:

B, D, A, C

A, B, C, D

B, A, D, C

C, B, D, A

✅ Correct Option: 1

If ex ante aggregate demand falls short of ex ante output (B), unsold goods pile up as unintended inventory accumulation (D). Producers respond by cutting output and employment (A), which reduces the income level in the economy (C). Sequence: B, D, A, C.

2026: 6 June Shift 1

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___.

2026: 6 June Shift 1

Which of the following depicts the actual meaning of marginal propensity to save (MPS)?

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. Excess Demand	I. Factors of production; willing to work but not able to get the work.
B. Voluntary unemployment	II. It leads to a decline in prices in the long run.
C. Deficient Demand	III. It leads to a rise in prices in the long run.
D. Under employment	IV. Factors of production are able but not willing to work.

Choose the correct answer from the options given below:

2022: 15 July Shift 2

Assume that in an economy increased consumption is equal to increased saving, how many times will the national income increase in such an economy with an increase in investment?

2023: 1 June Shift 1

Slope of Consumption curve is denoted by :

2026: 23 May Shift 1

The value of APC+ APS will be:

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)