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) Final goods market

(I) $\bar A+ cY$

(B) Consumers demand

(ΙΙ) $ΔY/ΔΑ$

(C) Investment multiplier

(III) $\bar C+cY$

(D) Linear equation

(IV) $a + bX$

Choose the correct answer from the options given below:

Options:

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

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

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

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

Correct Answer:

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

Explanation:

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

List-I

List-II

(A) Final goods market

(I) $\bar A+ cY$

(B) Consumers demand

(III) $\bar C+cY$

(C) Investment multiplier

(ΙΙ) $ΔY/ΔΑ$

(D) Linear equation

(IV) $a + bX$

In the final goods market, Aggregate Demand (AD) is represented by $\bar A+ cY$, where:

  • $\bar A$ = autonomous expenditure

  • cY = induced consumption

The consumption function is given by C = $\bar C+cY$ where:

  • $\bar C$ = autonomous consumption

  • cY = consumption dependent on income