CUET Economics: MacroIncome & Employment. Free, no login required.

Suppose the producers plans to add Rs. 100 cr worth of goods to her stock by the end of the year. However, due to an unforeseen upsurge of demand for her goods in the market, she had to sell goods worth Rs. 30 cr from her existing stock.

Now, determine Ex-ante Investment and Ex-post Investment from the above information.

Which of the following is not a reason for excess demand ?

Identify the statement that stands true during deficient demand :

(A) Actual output falls short of potential output

(B) Potential output falls short of actual output

(C) Actual demand is less than expected demand

(D) Expected demand is less than actual demand

Choose the correct answer from the options given below :

When consumption function starts from y axis, it indicates that ?

__________ can never be negative while __________ can have value as 1.

If the autonomous consumption is given as 100 and the tendency of the people to increase consumption for an increase in income is only 20%, then derive the savings function.

Assume a two sector economy in the above diagram, the initial demand curve $AD_1$ shifts upward to $AD_2$ due to :

In an economy, every time the National Income rises 20% of the rises in income is saved by households. Now suppose there is a rise in investment by $\overline{\mathbf{\tau}}$ 100 crores, then the National Income in this economy will rise by :

If the level of effective demand is much below the level of full employment equilibrium then which situation will appear in the economy ?

Match List I with List II

Choose the correct answer from the options given below:

Identify the correct statement from the following:

A. Consumption curve starts from the origin

B. The sum of APC and APS is equal to 1

C. Aggregate demand and market demand mean the same

D. The value of MPC and MPS varies between 0 and 1

E. At breakeven point saving is zero

Choose the correct answer from the options given below:

Identify the monetary invention that can Close the inflationary group:

Actual aggregate demand's gap from that needed to achieve full employment equilibrium is referred to as:

At equilibrium level of income in an economy:

If the ratio between MPC and MPS is 4:1, the value of investment multiplier will be:

In an economy if equilibrium level of national is Rs. 2000 crores, Autonomous consumption = Rs. 400 crores and Investment expenditure = Rs. 200 crores, then MPC will be:

In an economy MPS=0.20 and investment is increased by Rs. 400 crores, than total increase in income is _____ Crores.

Suppose a TV manufacturing unit wants to raise its inventories from 1000 units to 2000 units during the year. Expecting sale of 5000 units during the year, the firm produces 5000+1000= 6000 TV sets. Actual sale for the firm are 5000 TV sets during the year.

This is an example of:

In an Economy, AD = Rs.250 cr+0.6Y and at zero level of income consumption is Rs.150 crores The value of autonomous investment will be:

Which of the following is true about the aggregate demand curve in the short run;

Choose the correct option:

The size of investment multiplier (k) depends on:-

Identify the fiscal measures from the following that will help correct excess demand

A. Decrease in Repo rate.

B. Increase in taxes.

C. Decrease in government expenditure.

D. Increase in Repo rate

E. Decrease in taxes

Choose the correct answer from the options given below:

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?

If the equilibrium level of output is less than the full employment level, then it is a situation of:

A producer plans to add Rs.200 worth of goods to her stock by the end of the year. However due to an unexpected fall in the demand for her goods she adds Rs.250 worth of goods. Her ex-ante investment was____ and ex post investment was____

Marginal propensity to save in zero when.