Question

Match List-I (Concepts) with List-II (Meanings): \[ \small \begin{array}{|c|p{4.2cm}|c|p{5.8cm}|} \hline \multicolumn{2}{|c|}{List-I (Concepts) & \multicolumn{2}{c|}{List-II (Meanings) \hline (A) & Effective Demand Principle & (I) & Planned investment before actual execution \hline (B) & Autonomous Change & (II) & Expected consumption expenditure before the actual occurrence \hline (C) & Ex\text{-}ante Consumption & (III) & Change occurring independently of other factors in the economy \hline (D) & Ex\text{-}ante Investment & (IV) & Demand determines the level of employment and output \hline \end{array} \] Choose the correct answer from the options given below:

• A. (A)-(IV), (B)-(III), (C)-(II), (D)-(I)
• B. (A)-(II), (B)-(I), (C)-(IV), (D)-(III)
• C. (A)-(I), (B)-(IV), (C)-(III), (D)-(II)
• D. (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Hint:

Ex-ante: \[ \mathrm{Planned\ Values} \] Ex-post: \[ \mathrm{Actual\ Values} \]

Answer 1

The Correct Option is A

Step 1: Match Effective Demand Principle.
According to Keynes: \[ \mathrm{Demand\ determines\ employment\ and\ output} \] Thus: \[ (A)\rightarrow(IV) \]

Step 2: Match Autonomous Change.
Autonomous change means: \[ \mathrm{Change\ independent\ of\ other\ economic\ factors} \] Thus: \[ (B)\rightarrow(III) \]

Step 3: Match Ex-ante Consumption.
Ex-ante consumption means: \[ \mathrm{Planned\ or\ expected\ consumption\ expenditure} \] before actual occurrence. Thus: \[ (C)\rightarrow(II) \]

Step 4: Match Ex-ante Investment.
Ex-ante investment means: \[ \mathrm{Planned\ investment} \] before actual execution. Thus: \[ (D)\rightarrow(I) \]

Step 5: Identify correct combination.
Correct matching is: \[ (A)\rightarrow(IV) \] \[ (B)\rightarrow(III) \] \[ (C)\rightarrow(II) \] \[ (D)\rightarrow(I) \] Hence, the correct answer is: \[ \boxed{\mathrm{(A)}} \]