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प्रश्न
The value of marginal propensity to consume is 0.6 and initial income in the economy is Rs 100 crores. Prepare a schedule showing Income, Consumption and Saving. Also show the equilibrium level of income by assuming autonomous investment of Rs 80 crores.
उत्तर
Given that
Marginal propensity to consume (MPC) = 0.6
Initial income= 100
Autonomous investment= 80
`C = bar(C) + c(Y)`100
`C = 0 + 0.6(Y)`
| Income | Consumption | Saving | Investment |
| 100 | 60 | 40 | 80 |
| 200 | 120 | 80 | 80 |
| 300 | 180 | 120 | 80 |
| 400 | 240 | 160 | 80 |
| 500 | 300 | 200 | 80 |
Aggregate demand (AD) = Aggregate supply (AS)
AD= C+ I and AS = C+ S
Therefore, the equilibrium level of income is Rs 200 crores
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संबंधित प्रश्न
Complete the following table:-
| Income (Rs) | Consumption expenditure (Rs) | Marginal propensity to save | Average propensity to save |
| 0 | 80 | ||
| 100 | 140 | 0.4 | ....... |
| 200 | ........ | ...... | 0 |
| ....... | 240 | ........ | 0.20 |
| ......... | 260 | 0.8 | 0.35 |
An economy is in equilibrium. Find investment expenditure:
National Income =1,000
Autonomous Consumption =100
Marginal propensity to consume =0.8
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National Income =1,600
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2) Marginal propensity to save = 0.2
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