Which of the following pairs is correctly matched?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → John Maynard Keynes – arguably the founder of macroeconomics as a separate discipline
The Glossary describes John Maynard Keynes (1883–1946) as arguably the founder of macroeconomics as a separate discipline. The model of this chapter is based on his theory.
Option (1) John Maynard Keynes – arguably the founder of macroeconomics as a separate discipline — Correct. This is the Glossary description of Keynes.
Option (2) Effective demand principle – aggregate output is determined solely by aggregate supply — Incorrect. Under the effective demand principle, output is decided by aggregate demand, not supply.
Option (3) Ex post – other things remaining equal — Incorrect. Ex post is the actual value. ‘Other things remaining equal’ is ceteris paribus.
Option (4) Ceteris paribus – the planned value of a variable — Incorrect. Ceteris paribus means other things remaining equal. The planned value is ex ante.
NCERT (2026-27): “In this chapter we deal with the determination of National Income under the assumption of fixed price of final goods and constant rate of interest in the economy. The theoretical model used in this chapter is based on the theory given by John Maynard Keynes.” Glossary: “John Maynard Keynes – (1883 – 1946) Arguably the founder of Macroeconomics as a separate discipline.” Glossary: “Effective demand principle – If the supply of final goods is assumed to be infinitely elastic at constant price over a short period of time, aggregate output is determined solely by the value of aggregate demand. This is called effective demand principle.” Glossary: “Ex post – The actual or realised value of a variable as opposed to its planned value.” |