Question

Match List-I with List-II :

Choose the correct answer from the options given below:

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

Hint:

Micro: Price Theory; Macro: Income/Employment; Absolute Income: Consumption drifts with income; Pigou: Real-Balance Effect.

Answer 1

The Correct Option is B

Step 1: Pigou Effect is the Real-Balance Effect, so (D) pairs with (I).
Step 2: Microeconomics is Price Theory, so (A) pairs with (II).
Step 3: Macroeconomics covers income and employment theory, so (B) pairs with (III), leaving Absolute Income Hypothesis (C) with (IV).
Correct option: (A)-(II), (B)-(III), (C)-(IV), (D)-(I).