Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): The equilibrium level of income is determined, when ex-ante spending and ex-ante output are equal.
Reason (R): The equilibrium level of income may or may not be the same as the full employment level of output.
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): The equilibrium level of income is determined, when ex-ante spending and ex-ante output are equal.
Reason (R): The equilibrium level of income may or may not be the same as the full employment level of output.
Show Hint
- Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
- Both Assertion (A) and Reason (R) are true, but Reason (R) is {not} the correct explanation of Assertion (A).
- Assertion (A) is true, but Reason (R) is false.
- Assertion (A) is false, but Reason (R) is true.
The Correct Option is B
Solution and Explanation
Assertion (A): This is true because the equilibrium level of income is achieved when planned (ex-ante) spending equals planned (ex-ante) output, ensuring no unintended inventory changes.
Reason (R): This is also true because the equilibrium level of income is not necessarily the same as the full employment output. It can occur below or above the full employment level depending on aggregate demand.
Conclusion: Though both statements are true, Reason (R) does not fully explain Assertion (A), as equilibrium income is based on aggregate demand and not necessarily full employment.
Top Questions on Debts
- The rate of interest payable on debenture is _____.
- Debts which have to be paid at some specific future date are known as:
- \[ \begin{array}{|l|l|} \hline \textbf{Column I} & \textbf{Column II} \\ \hline \text{Cement shop owner} & \text{Self-employed} \\ \hline \text{Construction worker} & \text{Casual wage worker} \\ \hline \text{Civil engineer} & \text{Regular salaried} \\ \hline \end{array} \]
For a hypothetical economy, assume the government increased infrastructural investment by ₹10,000 crore. 80% of additional income is consumed in the economy. Estimate the increase in income and the corresponding increase in consumption expenditure in the economy.
- \[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (₹ crore)} \\ \hline (i) & \text{Wages and Salaries} & 2,000 \\ \hline (ii) & \text{Rent and Interest} & 700 \\ \hline (iii) & \text{Corporate Tax} & 500 \\ \hline (iv) & \text{Undistributed Profit} & 300 \\ \hline (v) & \text{Consumption of Fixed Capital} & 200 \\ \hline (vi) & \text{Dividend} & 150 \\ \hline (vii) & \text{Net Factor Income from Abroad} & -50 \\ \hline \end{array} \]
Questions Asked in CBSE CLASS XII exam
- A thin pencil of length \( f/4 \) is placed coinciding with the principal axis of a mirror of focal length \( f \). The image of the pencil is real and enlarged, just touches the pencil. Calculate the magnification produced by the mirror.
- CBSE CLASS XII - 2025
- electrostatic potential and capacitance
- A proton moving with velocity \( V \) in a non-uniform magnetic field traces a path as shown in the figure. The path followed by the proton is always in the plane of the paper. What is the direction of the magnetic field in the region near points P, Q, and R? What can you say about relative magnitude of magnetic fields at these points?
- CBSE CLASS XII - 2025
- Motion of charged particles in a magnetic field
- Assertion (A): In a first order reaction, if the concentration of the reactant is doubled, its half-life is also doubled.
Reason (R): The half-life of a reaction does not depend upon the initial concentration of the reactant in a first order reaction.- CBSE CLASS XII - 2025
- Chemical Kinetics
Rishika and Shivika were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2024 stood as follows:
Balance Sheet of Rishika and Shivika as at 31st March, 2024Liabilities Amount (₹) Assets Amount (₹) Capitals: Equipment 45,00,000 Rishika – ₹30,00,000
Shivika – ₹20,00,00050,00,000 Investments 5,00,000 Shivika’s Husband’s Loan 5,00,000 Debtors 35,00,000 Creditors 40,00,000 Stock 8,00,000 Cash at Bank 2,00,000 Total 95,00,000 Total 95,00,000 The firm was dissolved on the above date and the following transactions took place:
(i) Equipements were given to creditors in full settlement of their account.
(ii) Investments were sold at a profit of 20% on its book value.
(iii) Full amount was collected from debtors.
(iv) Stock was taken over by Rishika at 50% discount.
(v) Actual expenses of realisation amounted to ₹ 2,00,000 which were paid by the firm. Prepare Realisation Account.- CBSE CLASS XII - 2025
- Dissolution of Partnership Firm
- Your school is organizing an Inter-House Science Model-Making Competition. As President of the Science Club, draft a notice to inform all House members from IX – XII about the competition and specify the number of registrations invited per house. Include other necessary details. You are Mitali/Mukesh. Put your notice in a box.
- CBSE CLASS XII - 2025
- Letter Writing