Match List-I with List-II
Choose the correct answer from the options given below: |
(A)-(II), (B)-(III), (C)-(IV), (D)-(I) (A)-(I), (B)-(III), (C)-(II), (D)-(IV) (A)-(I), (B)-(II), (C)-(IV), (D)-(III) (A)-(III), (B)-(IV), (C)-(I), (D)-(II) |
(A)-(II), (B)-(III), (C)-(IV), (D)-(I) |
The correct answer is Option (1) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I) (A) Ex-post investment → (II) Planned Investment + Unplanned Investment. Ex-post investment includes both the investment firms planned to make and the inventory changes that occurred unintentionally, making it the sum of planned and unplanned investment. (B) Investment multiplier → (III) 1 / (1 − MPC). This is the standard formula for the investment multiplier in Keynesian economics, showing how initial investment leads to a multiplied increase in income. (C) Ex-ante aggregate demand → (IV) $\bar I +\bar C + cY$. This is the equation of the planned or ex-ante aggregate demand function, including autonomous investment, autonomous consumption, and the induced consumption based on income (cY). (D) Owing to increase in investment → (I) AD function shifts upward. When investment increases, the aggregate demand curve shifts upward because there is now more planned expenditure at every level of income. |