Match List-I with List-II

List-I	List-II
(A) Aggregate demand (AD)	(I) C/Y
(B) Marginal propensity to consume (MPC)	(II) S/Y
(C) Average propensity to consume (APC)	(III) C + I
(D) Average propensity to save (APS)	(IV) ΔC/ΔY

Choose the correct answer from the options given below:

What will be the effect on Aggregate Demand when MPC decreases ?

When in a two sector economy, at a particular price level, aggregate demand for final goods equals aggregate supply of final goods, the final goods or product market reaches its equilibrium. In this context, identify the correct statement.

$C = 120 + 0.5Y$

$I = 20$

What is the equilibrium income?

Match List-I with List-II

Choose the correct answer from the options given below:

1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
2. (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
3. (A) - (III), (B) - (I), (C) - (II), (D) - (IV)
4. (A) - (III), (B) - (I), (C) - (IV), (D) - (II)

When the consumption is changed as per the change in income level such consumption is known as:

Deficit Demand Occurs when :

(A) Equilibrium level of output is less than full employment level

(B) When AD < AS (Aggregate Demand less than Aggregate Supply)

(C) When output decreases

(D) Demand is not enough to employ all factors of production

(E) Prices will decline in the long run

Choose the correct answer from the options given below :