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Find Equilibrium National Income: Autonomous Consumption Expenditure = 120 Marginal Propensity to Consume = 0.9 Investment Expenditure = 1100 - Economics

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प्रश्न

Find equilibrium national income:

Autonomous consumption expenditure = 120

Marginal propensity to consume = 0.9

Investment expenditure = 1100

उत्तर

Given that

I = Rs 1100

Marginalpropensity toconsume 0.9

`barC` = Rs 120

Y = ?

As we know that

Y = C + I

Y = `barC+`

Y = 120 + 0.9 x Y + 1100

Y = 0.9 x Y + 1220

Y = 12,200

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संबंधित प्रश्‍न

An economy is in equilibrium. From the following data about an economy, calculate investment expenditure:

1) Income = 10000

2) Marginal propensity to consume = 0.9

3) Autonomous consumption = 100


Define marginal propensity to save.


An economy is in equilibrium. Find Marginal Propensity to Consume from the following:
National income = 2000
Autonomous consumption = 400
Investment expenditure = 200


An economy is in equilibrium. Calculate Marginal Propensity to Save from the following :
National Income = 1,000
Autonomous Consumption = 100
Investment Expenditure = 200


Complete the following table:

Consumption expenditure

(Rs)

Savings

(Rs)

Income

(Rs)

Marginal

propensity to Consume

100

50

150

 

175

75

…….

……

250

100

…….

……

325

125

…….

……


Answer the following question :

Explain the types of investment expenditure.


Give reasons or explain the following statement: 

 Income which is not saved is consumption.  


Define 'or' explain the following concept.

Propensity to save


Answer the following question.
What is meant by autonomous consumption? Explain with the help of a diagram.


Suppose in a hypothetical economy, the income rises from  5,000 crores to  6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be __________.


APC + APS = ?


Which of the following statement is true?


What is "MPS" or the 'marginal propensity' to save? 


If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be:


The marginal physical product of a factor must be ______ when the total physical product is falling.


Identify the correctly matched pair from Column A to that of Column B:

Column A Column B
(1) MPC (a) Ratio of Savings to Consumption
(2) APC (b) Ratio of Consumption to Income
(3) APS (c)  Ratio of Consumption to Savings
(4) MPS (d) Ratio of Savings to Investment

Complete the following table:

INCOME
(Y)
SAVING
(S)
APC
0 (-) 12  
20 6  

How is APS obtained from the APC?


What is meant by autonomous consumption expenditure? Show it on a diagram.


APC can be greater than one, but MPC is always less than one. Give a reason to justify this phenomenon.


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