Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Match the following:

Options:

i-d, ii-c, iii-a, iv-b

i-d, ii-c, iii-b, iv-a

i-d, ii-a, iii-c, iv-b

i-a, ii-b, iii-c, iv-d

Correct Answer:

i-d, ii-c, iii-a, iv-b

Explanation:

(i-d) If income increases, savings increases.
(ii-c) AD and AS approach is one of the ways of determining equilibrium. The other approach is S-I approach.
(iii-a) Deficient demand happens when economy is operating at a level below the full employment.
(iv-b) Moral suasion is an advice by RBI to banks in matter related to lending and other matters via discussions and letters to commercial banks