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

In the consumption equation, the slope of the consumption function is represented as:

According to ___________, if the marginal propensity to save in the economy increases, the total value of saving in the economy will not increase.

Arrange the following steps of determination of equilibrium income in chronological order if

C = 40 + 0.8Y, I = 10.

(A) Y = C + I

(B) 0.2Y = 50

(C) Y = 50 + 0.8Y

(D) Y = 250

Choose the correct answer from the options given below:

1. (A), (B), (C), (D)
2. (A), (C), (B), (D)
3. (B), (A), (D), (C)
4. (C), (B), (D), (A)

Arrange the following as per the theory of the 'Paradox of Thrift':

(A) Marginal Propensity to consume decreases.

(B) Amount of savings decreases.

(C) People become more thrifty.

(D) Equilibrium level of income decreases.

Choose the correct answer from the options given below:

1. (C), (A), (D), (B)
2. (A), (C), (B), (D)
3. (B), (A), (C), (D)
4. (C), (B), (A), (D)

The General Theory of Employment, Interest and Money was published in......... and by .............

1. 2025, Adam Smith.
2. 1935, John Maynard Keynes.
3. 1936, John Maynard Keynes.
4. 1932, David Ricardo.

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

________ is the ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure of the economy.

The equilibrium level of output may be more or less than the full employment level of output. If it is less than the full employment of output, it is due to the fact that demand is not enough to employ all factors of production. This situation is called ......

Match List-I with List-II

Choose the correct answer from the options given below:

The equilibrium level of income depends on aggregate demand. Thus, if aggregate demand changes, the equilibrium level of income changes. This can happen in anyone or combination of the following situations:

(A) Change in autonomous consumption.

(B) Change in marginal propensity to consume.

(C) Income.

(D) Change in autonomous investment.

Choose the correct answer from the options given below:

______ level of income is that level of income where all the factors of production are fully employed in the production process.

In macroeconomic theory, which is not justification for taking the price level as fixed.

Arrange the following statements about the effect of an increase in taxes on total income and output.

(A) An increase in taxes decreases disposable income.

(B) Aggregate demand schedule shifts downwards.

(C) Aggregate expenditure changes by a fraction of tax deduction.

(D) Equilibrium output decreases.

The value that marginal rate of propensity can take in consumption function.

Arrange the following statements when autonomous investment increases..

(A) The autonomous expenditure increases.

(B) Aggregate demand and output have a multiplier effect.

(C) Income and output increases.

(D) The aggregate demand curve shifts parallel upward.

Choose the correct answer from the options given below:

Full employment, in context of determination of income, implies?

Deficient demand is said to exist in the economy when-

In an imaginary economy, the planned spending falls short of planned output at a certain level of employment. Arrange the following consequences of the same in sequential order.

(A) Unintended accumulation of inventories.

(B) The employment level falls.

(C) The output and income fall and the equilibrium is restored.

(D) Producers plan to produce less in the next period.

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?

The ratio of increase in income to increase in investment is termed as

The increase in income in an economy is four times more than the increase in investment. What is the value of marginal propensity to consume in this economy?

If the entire additional income is saved in an economy, the value of investment multiplier will be

Arrange the following in chronological order, starting from the earliest.

(A) Publishing of 'An inquiry into the Nature and Cause of the Wealth of Nations'.

(B) The Great Depression.

(C) Publishing of 'The Economic consequences of the Peace'.

(D) Publishing of 'General Theory of Employment, Interest and Money'.

Choose the correct answer from the options given below:

Assume that the marginal propensity to consume is 0.8. The tax multiplier will then be ............... ?

Aggregate demand for final goods consists which of the following?

(A) Ex-ante consumption.

(B) Ex-ante Investment.

(C) Government spending.

(D) Effective demand.

Choose the correct answer from the options given below:

"General Theory of Employment, Interest and Money" by John Maynard Keynes was written in?

Arrange the following statement considering the effects on total income and output when the government purchases (G) increase keeping taxes constant.

(A). Planned aggregate expenditure will increase.

(B). When G exceeds T, the government runs a deficit.

(C). Equilibrium income will increase.

(D). Aggregate demand schedule shifts rightward.

Choose the correct answer from the options given below:

......... is the situation where the equilibrium level of output is less than the full employment of output.

Match List-I with List-II

Choose the correct answer from the options given below:

Which of the following statements are true:

(A) Average propensity to consume is the change in consumption per unit to change in income.

(B) Ex-ante depicts what has been planned.

(C) Ceteris paribus means 'other things remain equal'.

(D) Ex-post depicts what has actually happened.

Choose the correct answer from the options given below: