Determination of Income and Employment

CBSE Class 12 Economics · every board question from this chapter, 2022–2026

• Assuming for an imaginary economy, consumption at zero level of income and break-even level of income is ₹ 50 and ₹ 200…2026
• Choose the correct consumption function from the options given below with reference to the illustrated given diagram.2026
• With reference to the given diagram, OL indicates. (Choose the correct option to fill in the blank) (i) Autonomous Consumption…2026
• In an economy, when is insufficient to achieve the level of output corresponding to the full employment, the difference is termed…2026
• Select the correct formula to calculate the value of Marginal Propensity to Save (MPS): I. (Change in Savings (Δ S))/(Change in…2026
• Investment is defined as addition to the. (i) Stock of physical capital (ii) Changes in the inventory (iii) Consumption (Choose…2026
• Identify, which of the following is true at the Break Even level of Income. (Choose the correct option)2026
• An economy may operate at a level below full employment due to a deficiency in Aggregate Demand (AD) leading to a/an employment…2026
• The Aggregate Demand (AD) curve lies parallel to consumption curve, indicating that both have. (Choose the correct option to fill…2026
• Suppose in a hypothetical economy, Y = 50 + 0·8Y + 100, where Y = National Income. The value of Investment Multiplier (K) would…2026
• Study the given image carefully: The line LK represents curve. (Choose the correct option to fill in the blank)2026
• Read the following statements: Assertion and Reason (R). Choose the correct option from those given below: Assertion: Government…2026
• Read the following statements carefully: Statement I: At the break-even level of income, the value of slope of the consumption…2026
• Explain the adjustment mechanism, if in an economy, ex-ante Savings are more than ex-ante Investments. OR Explain the process of…2026
• Explain the adjustment mechanism, if in an economy, ex-ante Aggregate Demand (AD) is more than ex-ante Aggregate Supply (AS). OR…2026
• Estimate the value of incremental investment if, equilibrium level of income increases by ₹ 50,000 crore and half of additional…2026
• Explain the adjustment mechanism, if in an economy, ex-ante Aggregate Demand (AD) is less than ex-ante Aggregate Supply (AS). OR…2026
• Assume, for a hypothetical economy, the following data is given: Income (Y) Consumption Investment (I) Aggregate Demand (AD) 0 40…2026
• (I) Calculate the value of Ex-ante Aggregate Demand (AD), if autonomous investment and consumption expenditure ( Ā ) = ₹ 50…2026
• (I) Estimate the value of subsistence level of consumption expenditure from the following data about an economy which is in…2026
• “Income of an economy increased from ₹ 20,000 to ₹ 50,000 crore. Savings of the economy increased from ₹ 2,000 crore to ₹ 10,000…2026
• “Under a study, examining the spending habits of a hypothetical economy, it was observed that even households with zero income…2026
• Assuming for a hypothetical economy, the following data is given: Income (Y) Consumption Investment (I) Aggregate Demand (AD) 0…2026
• Assuming for a hypothetical economy, the following data is given: Income (Y) Consumption Investment (I) Aggregate Demand (AD) 0…2026
• Income of an economy increased from ₹ 40,000 to ₹ 1,00,000 crore. Savings of the economy increased from ₹ 4,000 crore to ₹ 20,000…2026
• Read the following statements carefully: Statement 1: The government may reduce the repo rate, to control deflationary gap…2025
• If the value of Investment Multiplier (K) is 5, the relevant saving function would be. (Choose the correct option to fill in the…2025
• If an upward sloping straight line consumption function makes an intercept at the Y-axis at a positive coordinate, it implies…2025
• Under the Keynesian theory, ‘Reference Line’ is a straight line passing through the origin drawn at an angle of. (Choose the…2025
• Under the Keynesian theory, ‘Reference Line’ is a straight line passing through the origin drawn at an angle of. (Choose the…2025
• Suppose, the consumption function is given as: C = 205 + 0.9 Y (where C = Total Consumption and Y = National Income) The value of…2025
• Read the following statements carefully: Statement 1: Marginal Propensity to Consume (MPC) exhibits the consumption per unit of…2025
• Marginal Propensity to Consume (MPC) exhibits the slope of function. (Choose the correct option to fill in the blank)2025
• Read the following statements carefully: Statement 1: Marginal Propensity to Consume (MPC) refers to the consumption per unit of…2025
• Using the given information, complete the following table: (Choose the correct option) Income (Y) (in ₹ crore ) Savings (in ₹…2025
• In a two-sector economy, Aggregate Supply can be determined by adding and. (Choose the correct option to fill in the blanks)2025
• Suppose in an economy, planned spendings are greater than planned outputs. Identify the correct option with respect to effects on…2025
• Aggregate expenditure in the economy during an accounting year is also known as. (Choose the correct option to fill in the blank)2025
• In a two-sector economy, the Aggregate Demand can be determined by adding and. (Choose the correct option to fill in the blanks)2025
• The 45° line in Keynesian economics indicates. (Choose the correct option to fill in the blank)2025
• “In an economy, ex-ante Aggregate Demand (AD) is more than ex-ante Aggregate Supply (AS).” Explain the likely impact of the given…2025
• (i) “In an economy, ex-ante investment (I) exceeds ex-ante savings (S).” Explain the likely impact of the given situation on…2025
• “In an economy ex-ante investment (I) is less than ex-post savings (S).” Explain the likely impact of the given situation on…2025
• Suppose for two imaginary economies A and B, the values of Marginal Propensity to Save (MPS) stand at 0·2 and 0·4 respectively.…2025
• Estimate the value of Aggregate Demand (AD) in an imaginary economy: (i) Autonomous Investment (I_0 ) = ₹ 100 crore (ii) Marginal…2025
• Assuming for a hypothetical economy: (i) Autonomous Consumption Expenditure ( c̄ ) = ₹ 250 crore (ii) Marginal Propensity to Save…2025
• Suppose for two imaginary economies A and B, the value of Marginal Propensity to Consume (MPC) stands at 0·8 and 0·6…2025
• “An economy is operating at under-employment level of income.” What does this situation indicate? Discuss any one fiscal measure…2025
• Read the following text carefully: According to a report issued by a research organisation, there is a sharp decline in the…2025
• Assuming the following for a hypothetical economy, estimate the Break-even level of Income and Equilibrium level of Income: (i)…2025
• Assuming the following for a hypothetical economy, estimate the level of Break-even Income and Equilibrium Income: (i) Autonomous…2025
• Read the following text carefully: In an economy, a significant reduction in Aggregate demand raised concerns about future growth…2025
• Estimate the value of Aggregate Demand (AD) in an imaginary economy: (i) Autonomous Investment ( I_0 ) = ₹ 200 crore (ii)…2025
• Suppose for two imaginary economies A and B, the value of Marginal Propensity to Consume (MPC) stands at 0·5 and 0·8…2025
• Read the following statements: Assertion and Reason (R). Choose the correct alternative from those given below: Assertion:…2024
• Read the following statements carefully: Statement 1: A consumption function describes the relationship between consumption and…2024
• Read the following statements carefully: Statement 1: If in an economy the level of income increases (ΔY), it will always…2024
• Read the following statements – Assertion and Reason (R). Choose the correct alternative given below: Assertion: Full employment…2024
• Inflationary gap in an economy may exist when at full employment level. (Choose the correct alternative to fill in the blank)2024
• Read the following statements carefully: Statement 1: Constant rate of change of consumption (ΔC) with respect to change in…2024
• In order to discourage any fall in Aggregate Demand, the Government of India may the. (Choose the correct alternative to fill in…2024
• Total consumption expenditure by households under Keynesian Economics is a combination of and. Choose the correct alternative to…2024
• Suppose in an imaginary economy, autonomous consumption = ₹ 500 crore and marginal propensity to consume = 0·8. The saving…2024
• Read the following statements: Assertion and Reason (R). Choose the correct alternative from those given below: Assertion: The…2024
• Read the following statements carefully: Statement 1: Constant rate of change of consumption (ΔC) with respect to change in…2024
• Suppose for a hypothetical economy: C = 100 + 0·75Y (where C = Consumption and Y = Income) I_0 = 400 (I_0 = Autonomous…2024
• Read the following statements: Assertion and Reason (R). Choose the correct alternative from those given below: Assertion: The…2024
• “In an economy, ex-ante Aggregate Supply is more than ex-ante Aggregate Demand.” Explain its impact on the level of output,…2024
• For a hypothetical economy, assume the government increased an infrastructural investment by ₹ 10,000 crore. 80% of additional…2024
• Elaborate the two components of Aggregate Supply in a two-sector economy.2024
• Complete the following table. Construct/Express the Consumption function at ₹ 200 crore level of income. Income (Y) (in ₹ crore)…2024
• For a hypothetical economy, assume the government increased an infrastructural investment by ₹ 20,000 crore. 80% of additional…2024
• “If actual demand for final goods falls short of the actual output of final goods corresponding to full employment level, it may…2024
• For a hypothetical economy, the government incurs an additional investment expenditure of ₹ 5,000 crore. Assuming that the…2024
• For a hypothetical economy, assume the government increased an infrastructural investment by ₹ 30,000 crore. 80% of additional…2024
• Read the following statements carefully: Statement 1: Investment is defined as addition to the physical capital and changes in…2023
• Read the following statements carefully: Statement 1: Savings function can be derived from Consumption function. Statement 2:…2023
• If the Marginal Propensity to Save (MPS) is 0·5, what will be the value of investment multiplier? (Choose the correct…2023
• (i) If in an economy, the value of Investment Multiplier is 5 and dissavings are (–)100 crore, the relevant savings at income…2023
• If the value of investment multiplier = 4 and Dissavings = (–) 60, identify the correct Saving function from the following: OR…2023
• Read the following statements: Assertion and Reason (R). Choose the correct alternative given below: Assertion: Before reaching…2023
• Identify which of the following equations is true. (Choose the correct alternative)2023
• Read the following statements: Assertion and Reason (R). Choose the correct alternative given below. Assertion: Excess demand…2023
• Read the following statements: Assertion and Reason (R). Choose the correct alternative from those given below. Assertion:…2023
• A situation in which an able bodied person is not willing to work at the existing wage rate, is referred to as situation. (Choose…2023
• Read the following statements: Assertion and Reason (R). Choose the correct alternative given below. Assertion: Rich people have…2023
• Read the following statements: Assertion and Reason (R). Choose the correct alternative from those given below. Assertion: The…2023
• Suppose the following information is given about a hypothetical economy: C = 100 + 0.75 Y (where, C = Consumption and Y = Income)…2023
• Suppose consumption function for an economy is C = 80 + 0.75 Y (where C = consumption function and Y = national income) and the…2023
• “In an economy, an increase in investment leads to doubling of the national income.” Calculate the Marginal Propensity to Consume…2023
• Describe the adjustment mechanism if Aggregate Demand (AD) is less than Aggregate Supply (AS).2023
• Describe the adjustment mechanism, if ex-ante savings are less than ex-ante investments.2023
• Discuss briefly, how the government can control the situation of deflation using the following: Taxation Policy Government…2023
• An economy is in equilibrium. From the following data, calculate the value of Autonomous Consumption. National Income = ₹ 5,000…2023
• Suppose the following information is given about a hypothetical economy: C = 200 + 0.75 Y (where, C = Consumption and Y = Income)…2023
• Suppose the following information is given about a hypothetical economy: C = 300 + 0·8 Y (where, C = Consumption and Y = Income)…2023
• Justify the following statement: “Full employment is an essential condition to be fulfilled under Keynesian Economics…2022
• 'Consumption function curve of an involuntary unemployed workers start from some positive level on Y-axis even at zero level of…2022
• "In an economy, the autonomous consumption is ₹ 100 and Marginal Propensity to Consume (MPC) is 0.6. If the equilibrium level of…2022
• You are given the consumption function of an imaginary economy, C = 100 + 0·8 Y, where C = Consumption and Y = Income. Calculate:…2022
• Justify the following statement: “Full employment is an essential condition to be fulfilled under Keynesian Economics…2022
• If planned savings exceed planned investments in an economy, state its likely impact on output and employment. OR If planned…2022
• "In an economy, the autonomous consumption is ₹ 100 and Marginal Propensity to Consume (MPC) is 0.6. If the equilibrium level of…2022
• 'Consumption function curve of an involuntary unemployed workers start from some positive level on Y-axis even at zero level of…2022
• Calculate the Equilibrium level of Income for an imaginary economy, if it is given that: Saving function, S = (–)500 + 0·2 Y…2022
• State and discuss any one component of Aggregate Demand in a two-sector economy.2022
• Calculate the Equilibrium level of Income for an imaginary economy, if it is given that: Consumption function, C = 400 + 0·6 Y…2022
• At the break-even point level of incomes for the economy is ₹ 10,000 crores and if the people tends to save 20 per cent of their…2022
• Calculate the Equilibrium level of Income for an imaginary economy, if it is given that: Consumption function, C = 500 + 0·80 Y…2022
• "The Government has raised the exemption limit for the payment of Income tax from ₹ 2 lakh to ₹ 2.5 lakh." If the situation of…2022
• “In a hypothetical economy, planned savings fall short of planned investments, leading to fall in employment and income.” Do you…2022
• "The Government has raised the exemption limit for the payment of Income tax from ₹ 2 lakh to ₹ 2.5 lakh." If the situation of…2022
• Define Inflationary Gap. State, how the government can control the situation of inflationary gap, using the taxation policy.2022
• Define Inflationary Gap. State, how the Central Bank of an economy can control the situation of inflationary gap, using any…2022
• "The Government has raised the exemption limit for the payment of Income tax from ₹ 2 lakh to ₹ 2.5 lakh." If the situation of…2022
• Discuss briefly the working process of investment multiplier (K), assuming that Change in Investment (ΔI) is ₹ 4,000 crore and…2022
• Define Deflationary Gap. State, how the government can control the situation of deflationary gap, using the taxation policy.2022
• 'Investment multiplier and Marginal Propensity to Save are indirectly related to each other.' Explain with the help of numerical…2022
• 'Investment multiplier and Marginal Propensity to Consume are directly related to each other.' Explain with the help of numerical…2022
• Explain the concept of deficient demand. How can government spending policy be helpful in correcting the situation of deficient…2022
• “Consumption and saving curves complement each other.” Do you agree with the statement? Explain with valid reasons. “Taxes help…2022
• Explain the concept of excess demand. How can government spending policy be helpful in correcting the situation of excess demand?2022

Answers come from CBSE’s own marking schemes. How we source them.