Match List-I with List-II. List-I

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Match List-I with List-II.

List-I	List-II
(A) Ex-ante saving	(I) Planned output
(B) Multiplier	(II) $\frac{ΔY}{ΔI}$
(C) Aggregate supply	(III) Direct relationship with investment multiplier
(D) Marginal Propensity to consume	(IV) Desired saving

Choose the correct answer from the options given below :

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is option (2) : (A)-(IV), (B)-(II), (C)-(I), (D)-(III)

List-I	List-II
(A) Ex-ante saving	(IV) Desired saving
(B) Multiplier	(II) $\frac{ΔY}{ΔI}$
(C) Aggregate supply	(I) Planned output
(D) Marginal Propensity to consume	(III) Direct relationship with investment multiplier

A) Ex-ante saving: This term refers to the planned or desired level of saving by individuals or an economy, which is denoted by (IV) Desired saving.
(B) Multiplier: The multiplier effect in economics is described by the formula (II) ΔY / ΔI, where ΔY is the change in national income and ΔI is the change in investment.
(C) Aggregate supply: Aggregate supply in macroeconomics refers to the total output or production planned by firms in an economy, which matches with (I) Planned output.
(D) Marginal Propensity to consume: This term describes the proportion of additional income that is spent on consumption, and it has a (III) Direct relationship with the investment multiplier.