Match List-I (term) with List-II (meaning in the NCERT glossary):
| List-I | List-II | ||
|---|---|---|---|
| (A) | Autonomous change | (I) | The value of planned consumption |
| (B) | Parametric shift | (II) | Shift of a graph due to a change in the value of a parameter |
| (C) | Effective demand principle | (III) | A change in the values of variables in a macroeconomic model caused by a factor exogenous to the model |
| (D) | Ex ante consumption | (IV) | With final goods supply infinitely elastic at constant price, aggregate output is determined solely by aggregate demand |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A) - (III), (B) - (II), (C) - (IV), (D) - (I)
All four are Glossary terms of this chapter.
| List-I | List-II | Reason |
|---|---|---|
| (A) Autonomous change | (III) A change in the values of variables in a macroeconomic model caused by a factor exogenous to the model | An autonomous change comes from a factor outside the model. |
| (B) Parametric shift | (II) Shift of a graph due to a change in the value of a parameter | A change in a parameter, such as the slope, shifts the graph. |
| (C) Effective demand principle | (IV) With final goods supply infinitely elastic at constant price, aggregate output is determined solely by aggregate demand | With supply fully elastic at a fixed price, demand alone decides output. |
| (D) Ex ante consumption | (I) The value of planned consumption | Ex ante means planned, so ex ante consumption is planned consumption. |
NCERT (2026-27), Introductory Macroeconomics, Glossary: “Autonomous change – A change in the values of variables in a macroeconomic model caused by a factor exogenous to the model.” Glossary: “Effective demand principle – If the supply of final goods is assumed to be infinitely elastic at constant price over a short period of time, aggregate output is determined solely by the value of aggregate demand. This is called effective demand principle.” Glossary: “Ex ante consumption – The value of planned consumption.” Glossary: “Parametric shift – Shift of a graph due to a change in the value of a parameter.” |