List of top Economics Questions on Income and Output Determination asked in CUET (PG)

Match List-I with List-II.

List-IList-II
A. Classical ModelI. Supply creates its own demand
B. Effective DemandII. Level of aggregate demand where planned saving = planned investment
C. Say's lawIII. Output determined by aggregate demand in short run
D. Keynesian ModelIV. Price and wage flexible full employment assumed
Consider the following statements: A. IS curve shifts to right when government's expenditure rises, B. LM Curve shifts to left when money supply falls, C. Interactions of IS-LM curve determines equilibrium of interest rate and income, D. A rise in price level shift LM curve to left, E. Liquidity trap makes LM curve vertical.
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: In the Keynesian model equilibrium output is determined where aggregate demand equals aggregate supply. Reason R: Effective demand is the level of demand that will occur, given firm's expectation of profit.
In a two sector model, let \(C=60+0.80Y\), \(I=116-2i\), \(L=0.20Y-5i\) and \(M=120\). The LM equation will be
Which one of following is not a measure of National Income of a country?
In the short run, if planned purchase exceeds production
In the context of the Keynesian concept of a multiplier, a 1 increase in government spending financed by a 1 increase in taxes will cause equilibrium income
Which of the following is not true about the Classical and Keynesian aggregate demand (AD) and aggregate supply (AS) schedules?
One of the conditions for national income or output to be in equilibrium is that the desired investment (Id) must equal the realised investment (Ir). If \( I_d > I_r \), the difference results in:

In the context of the Keynesian concept of a multiplier, a \(\$\)1 increase in government spending financed by a \(\$\)1 increase in taxes will cause equilibrium income to:

Which of the following statements are correct about the IS curve? 

(A) It shows the combination of the interest rate and the level of income such that the money market is in equilibrium. 
(B) It is negatively sloped. 
(C) The smaller the multiplier and the more sensitive investment spending is to changes in the interest rate, the steeper the IS curve. 
(D) An increase in government purchases shifts the IS curve to the right. 
Choose the correct answer from the options given below: 
 

If the GDP of an economy be Rs.100 and the autonomous aggregate investment and ex-post aggregate saving be Rs.30 in equilibrium, what would be the aggregate saving in equilibrium in that economy if the aggregate investment remains at Rs.30 and the average saving propensity increases from 30% to 40%?
The GDP of an economy is Rs.100 crores. The aggregate saving is Rs.30 crores. If the autonomous aggregate investment rises from Rs.30 crores to Rs.45 crores, ceteris paribus, what would be the GDP in that economy in the new equilibrium?
What would be the slope of the LM curve in the interest rate-income plane, if the rate of interest is exogenously determined by the Central bank?
Arrange the following statements based on Keynesian theory.
(A) Level of aggregate income rises in Keynesian world.
(B) Aggregate Saving as a function of GDP rises.
(C) Government expenditure rises.
(D) Fiscal deficit rises, given revenue receipts.
Arrange the followings in a correct order.
(A) Employment and income come down.
(B) Investment demand comes down.
(C) Demand-pull inflation rate comes down.
(D) Repo rate or policy interest rate rises.
Which of the following statements hold true when steady state is attained in the Solow Model?
(A) Capital-Labour ratio does not change
(B) Depreciation does not change
(C) Income per capita does not change
(D) Inequality does not change
Choose the correct answer from the options given below:
Match the measures with the concept that is being measured

List-I(Indicators)

List-II(Description)

AGini CoefficientIMeasures the wearing out of capital
BGDP DeflatorIIMeasures poverty
CHead Count RatioIIIMeasures changes in price level
DDepreciationIVMeasures inequality

Choose the correct answer from the options given below