An economy is in equilibrium from the following date about an econmy ,calcualate autonomous consumption ,(set 1) (i) income =5,000 (ii) marginal prope

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An economy is in equilibrium from the following date about an econmy ,calcualate autonomous consumption ,(set 1)
(i) income =5,000
(ii) marginal propensity to save =0.2
(iii) investment expenditure =800
An economy is in equilibrium from th following date about an economy , calculate investment expenditure :(set 2)
(i) income =10,000
(ii) marginal propensity to consume =0.9
(iii) Autonomous consumption =100
An economy is in equilibrium , from the following date , calculate autonomous sonsumption .(set 3)
(i) income =10,000
(ii) Marginal propensity to save =0.2
(iii) investment =1,500


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Salim Ahmed Kawsar

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Correct Answer - Autonomous consumption =200
investment expenditure =900
Autonomous consumption =500

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An economy is in equilibrium. From the following data about an economy calculate autonomous consumption: (i) Income=5000 (ii) Marginal Propensity to s

Y=C+I `Y=bar(C)+bY+I` `Y=bar(C)+bY+I` `5000=bar(C)100+0.8(5000)+800[MPS=0.2, MPC=0.8]` 5000=bar(C )+4000+800 bar(C )=5000-4800=200

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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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An economy is in equilibrium. Calculate the National Income from the following : Autonomous consumption = 120, Marginal propensity to save=0.2, Invest

Correct Answer - 1350

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In an economy `C=500+0.9 Y` and `I=1,000` (where `C=` consumption, `Y=` income, `I=` investment). Calculate the following : (i) Equilibrium level of i

given `Y=C+I` (i) `Y=500+0.9 Y+1000` `Y=1500+0.9 Y` or `0.1 Y=1,500` `Y=` Rs. `15,000` (ii) `C=Y-I=15,000-1,000=` Rs. `14,000`.

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In an economy, `C=1000+0.5 Y` and `I=2,000`, calculate : (i) Equilibrium level of income. (ii) Saving at equilibrium level of income.

(i) `Y=C+I=1000+0.5 Y+2000=3000+0.5 Y` or `0.5 Y=3000` `Y=6000` (ii) `S=Y-C=6000-(1000+0.5xx6000)`. `=6000-4000=2000`.

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Find National Income from the following : Autonomous consumption = Rs. 100 Marginal propensity to consume = 0.80 Investment = Rs. 50

`Y=bar(C)+MPC. Y+I=100+0.8Y+50` `0.2Y=150` `Y=750` (Rs.)

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find investment from the following : National Income = Rs. 500 Autonomous consumption = Rs. 100 Marginal propensity to consume `=0.75`

`Y=bar(C)+MPC. Y+I` `500=100+(0.75xx500)+I` `I=500-100-375= Rs. 25`

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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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Calculate investment expenditure from the following date about an economy which is in equilibrium :(set 1) `{:("National income ",=,1","000),("Margina

Correct Answer - ( investment Expenditure =50) Autonomous consumption expenditure =140) ( marginal propensity to consume =0.6)

2 Answers 1 views
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