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Topic Consumption function
Asked 2 times across 2 UPSC exams, peaking in 2019.
Key insights
- Most tested in CAPF — 1 of 2 PYQs
- Most asked in 2019
- Recurs across 1 years (2019–2019)
How it travelled across exams
First appearance in each exam — the same idea, reframed.
CAPF 2019 → CDS 2019
How the concept evolved
Rising — more than half its appearances (2 of 2) are since 2016.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CAPF2019
According to simple Keynesian theory, the slope of the aggregate consumption curve against income is
- A Positive ✓
- B Negative
- C Zero
- D Infinity
✓ Correct answer: (A)
Economy › Macroeconomics
CDS2019
Which one of the following hypotheses postulates that individual's consumption in any time period depends upon resources available to the individual, rate of return on his capital and age of the individual?
- A Absolute Income Hypothesis
- B Relative Income Hypothesis
- C Life Cycle Hypothesis ✓
- D Permanent Income Hypothesis
✓ Correct answer: (C)
Economy › Macroeconomics
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