One of the conditions for national income or output to be in equilibrium is that the desired investment (I) must equal the realised investment (Ir). If , the difference results in
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4 marks, −1MacroeconomicsKeynesian cross and the multiplierKeynesian cross equilibriumModerateabout 1 min
CUET-PG 2025 Question 33: Keynesian cross and the multiplier
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One of the conditions for national income or output to be in equilibrium is that the desired investment (I) must equal the realised investment (Ir). If I > Ir, the difference results in (A) unintended inventory accumulation (B) unintended inventory shortfall (C) no change in inventory stock (D) increasing tax rate
Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.
What this question tests
This question is on Keynesian cross equilibrium, part of Keynesian cross and the multiplier in Macroeconomics.
How income is determined when output adjusts to planned spending, and what happens to unplanned inventories.
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