Question

Match List-I with List-II

List-I (Term/Hypothesis/Effect) & List-II (Alternative Term/Name)
(A). Microeconomics & (I). Real-Balance Effect
(B). Macroeconomics & (II). Price Theory
(C). Absolute Income Hypothesis & (III). Income and Employment Theory
(D). Pigou Effect & (IV). Drift Hypothesis
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:

To remember:
- Microeconomics focuses on individual units and prices (Price Theory).
- Macroeconomics focuses on national indicators (Income and Employment Theory).
- Pigou Effect links real wealth balances to spending (Real-Balance Effect).

Answer 1

The Correct Option is B