Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Question:

Which of the following assumptions is made to determine the level of aggregate demand for final goods in the economy?

I. A constant final goods price and constant rate of interest over short run are assumed.

II. The aggregate supply is assumed to be perfectly elastic.

Options:

Only II

Only I

Neither I nor II

Both I and II

Correct Answer:

Both I and II