C=100+0.4 Y is the consumption Function of an economy where C is consumption expenditure and Y is National income , Inestment expenditure is 1,100 cal

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C=100+0.4 Y is the consumption Function of an economy where C is consumption expenditure and Y is National income , Inestment expenditure is 1,100 calculate
Equilibrium level of National income
(ii) Consumption expenditure at equilibrium level of national income (set 1) in economy s=- 100+0.6 Y is the saving function ,where S is saving and Y is National income ..If investment is 1100 Calculate :
(i) Equilibrium level of National income
(ii) Consumption expenditure at equilibrium level of NAtional income .(set 2)
c=50+0.5 Y is the consumption fuca=tion where C is consumption and Y is National income and invesrment expenditure is 2.000 in an economy ,calculate
(i) equilibrium level Of (national ) income
(ii) Consumpton exendditture at equilibrium level of (National ) income (set 3)


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Salim Ahmed Kawsar

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Correct Answer - {(Rs. 2000;(ii) Rs.900)}
{(Rs.2000;(ii) Rs.900)}
{(Rs.4100;(ii) Rs.2100)}

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An economy is in equilibrium. From the following data about an economy investment expenditure. (i) Income=1000 (ii) Marginal propensity to consumption

Y=C+I `Y=bar(C)+bY+I` `Y=bar(C)+bY+I` `10000=100+9000+I` I=10000-9100 I=900

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An economy is in equilibrium. From the following data, calculate MPS. (i) Income=10,000 (ii) Autonomous consumption =500 (iii) Consumption expenditure

`C=barC+bY` 8000=500+b(10,000) b(10,000)=7500 `b=(7500)/(10,000)=0.75` or MPC=0.75 We know that MPC + MPS =1 0.75+MPS=1 MPS=1-0.75

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In an economy, every time income rises, 75% of the rise in income is spent on consumption. Now suppose in the same economy investment rises by Calcula

3000 crore, 750 crore

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From the data given below about ·an economy calculate: (a) Investment-expenditure (b) Consumption expenditure (i) Equilibrium level of income 5000 (ii

Correct Answer - 25002500

2 Answers 2 views
In an economy C=200 +0.75Y is the consumption function where C is consumption expenditure national income. Investment expenditure is 4000. Calculate e

Correct Answer - `16800,12800`

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C= 100 + 0.4Y is the consumption function of an economy where C is consumption expenditure and Y is National Income. Investment expenditure is 1100. C

Correct Answer - 2000900

2 Answers 2 views
Prove that `^100 C_2^(100)C_2+^(100)C_2^(100)C_4+^(100)C_4^(100)C_6++^(100)C_(98)^(100)C_(100)=1/2[^(200)C_(98)-^(100)C_(49)]dot`

To find `S = .^(100)C_(0).^(100)C_(2)+.^(100)C_(2).^(100)C_(4)+.^(100)C_(4).^(100)C_(6)+"....."+.^(100)C_(98).^(100)C_(100)` Consider, `.^(100)C_(0).^(100)C_(2)+.^(100)C_(1).^(100)C_(3) + .^(100)C_(2).^(100)C_(4)+.^(100)C_(3)+.^(100)C_(5)+"...." + .^(100)C_(98).^(100)C_(100)` `= .^(100)C_(0).^(100)C_(98)+.^(100)C_(1).^(100)C_(97) + .^(100)C_(2).^(100)C_(96)+.^(100)C_(3).^(100)C_(95) + "....."+^(100)C_(98) .^(100)C_(0)` = Coefficients of `x^(98)` in `(1+x)^(100) (1+x)^(100)` `= .^(200)C_(98) " "(1)` Also,...

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Calculate the national income by (a) income, and (b) expenditure methods. (i) Wages and slaeries 500 (ii) Government final consumption expendture 120

N.I.=i+(viii+iii)+iv+(xi+xii)+xv `=500+(50+20)+40+(100+20)+(-5)` `=500+70+40+120-5` =rs 725 crore. (b) N.I. =(v+ix)+ii+(x+vi)+xiii-vii+xiv+xv `=(600+30)+120+(60+10)+(-20)-100+30+(-5)` `=630+120+70-20-100+30-5` =725 crore.

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In an economy, every time the income rises, `75` percent of the rise in income is spent on consumption. Now suppose in the same economy investment ris

(i) `MPC=0.75, :. MPS=0.25` `:. K=1/(1-MPC)=1/(1-0.75)=4` `:. DeltaY=K. Delta I=4xx750` crore = Rs. `3,000` crore `133` (ii) `DeltaS=DeltaY-DeltaC=3,000-(0.75xx3,000)` `=3000-2250` crore = Rs. `750` crore.

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Find consumption expenditure from the following : Autonomous consumption = Rs. 100 Marginal propensity to consume = 0.70 National Income = Rs. 1,000

`C=bar(C)+MPC.Y` `C=100+(0.70xx1,000)=100+700= Rs. 800`

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