Question

Match List-I with List-II.

List-I	List-II
A. Classical Model	I. Supply creates its own demand
B. Effective Demand	II. Level of aggregate demand where planned saving = planned investment
C. Say's law	III. Output determined by aggregate demand in short run
D. Keynesian Model	IV. Price and wage flexible full employment assumed

• A. A-III, B-IV, C-II, D-I
• B. A-IV, B-I, C-II, D-III
• C. A-IV, B-II, C-I, D-III
• D. A-IV, B-II, C-III, D-I

Hint:

Classical model assumes flexible prices and wages, while Keynesian model gives importance to aggregate demand in determining output.

Answer 1

The Correct Option is C