CASE: In an economy, aggregate demand is lower than aggregate supply at the current level of income for Question No. 74 and 75. This situation will…

CA Foundation · Business Economics · MTP · May 2026
CASE: In an economy, aggregate demand is lower than aggregate supply at the current level of income for Question No. 74 and 75. This situation will lead to:
(A) A. Rise in output
(B) B. Increase in employment
(C) C. Fall in national income
(D) D. Full employment

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Fall in national income

Topics: Determination of National Income

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