Loans from the World Bank create liabilities and are Capital receipts (II). GST is an indirect tax, hence a Tax revenue receipt (III). Dividends earned by the government are Non-tax revenue receipts (I). Post office savings are forms of government borrowings, thus Debt capital receipts (IV).
If the new equilibrium (E1) lies below the full employment equilibrium (E), the aggregate demand is insufficient to utilize all available resources. This situation indicates Deficient Demand in the economy.
Q. 5734928. Arrange the following according to the sequence of occurrence:-
A. Economy is at the equilibrium level of output
B. AD curve shifts upwards
C. Hence there will be excess demand in the economy
D. Due to discovery of new resources Autonomous investment increases
(A) A, B, D, C
(B) D, B, C, A
(C) B, D, C, A
(D) D, B, A, C
Answer:
(B) D, B, C, A
Explanation:
The logical sequence starts with the discovery of resources leading to increased investment (D). This investment injection causes the AD curve to shift upward (B). At the original price level, this creates excess demand (C), which eventually drives the economy to a new, higher equilibrium level of output (A).
Q. 5734929. Match List I with List II
List I
A. Marginal propensity to consume
B. Multiplier (Investment)
C. Multiplier (Money)
D. Average propensity to consume
List II
I. C/Y
II. 1/LRR
III.
IV.
(A) A-II, B-III, C-IV, D-I
(B) A-I, B-II, C-III, D-I
(C) A-IV, B-I, C-II, D-III
(D) A-IV, B-III, C-II, D-I
Answer:
(D) A-IV, B-III, C-II, D-I
Explanation:
MPC is the change in consumption over change in income (). Investment Multiplier is the change in income over change in investment (). Money multiplier relies on reserve requirements (1/LRR). APC is total consumption over total income (C/Y).
Q. 5734930. Which of the following is correct?
A.
B.
C.
D.
Choose the correct answer from the options given below:
(A) A and B only
(B) B and C only
(C) C and D only
(D) A and D only
Answer:
(C) C and D only
Explanation:
This question contains typographical/OCR errors from the original paper. It is testing macroeconomic formulas: Statement C likely refers to the Investment Multiplier formula , and Statement D refers to the identity MPC + MPS = 1. Both are fundamentally correct economic relationships, making option (C) the correct choice.
