An increase in total autonomous expenditure is by 100 units and the value of multiplier is 5. What will be the impact on equilibrium income? Option 1: Equilibrium income will increase by 500 units Option 2: Equilibrium income will decrease by 500 units Option 3: Equilibrium income will decrease by 20 units Option 4: Equilibrium income will increase by 20 units

The answer is 'Equilibrium income will increase by 500 units'. View full solution:

CUET Economics - An increase in total autonomous expenditure is by 100 units and the value of multiplier is 5. What will be the impact on equilibrium income? | PYQs + Solutions

CUET Economics 2026 12th May Shift 1

Macro

Easy

Equilibrium income will increase by 500 units

Equilibrium income will decrease by 500 units

Equilibrium income will decrease by 20 units

Equilibrium income will increase by 20 units

✅ Correct Option: 1