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प्रश्न
An economy is in equilibrium. Calculate national income from the following :
Autonomous consumption = 100
Marginal propensity to save = 0.2
Investment expenditure = 200
उत्तर
Autonomous consumption `(barC) = 100`
Marginal propensity to save (MPS) 0.2
Investment expenditure (I) = 200
We know that ,
Marginal propensity to consume (MPC) = 1 - MPS = 1 - 0.2 = 0.8
We know that at equilibrium,
National Income (Y) = C + I
or
`Y = barC + MPC(Y) + I`
Y = 100 + 0.8Y + 200
Y = 0.8Y + 300
Y - 0.8Y = 300
0.2Y = 300
Therefore, Y = 1,500
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