Question : An economy is in equilibrium. Its consumption function is C= 100+0.70Y, Investment = 200. Find national income.
Option 1: 1000
Option 2: 1200
Option 3: 1400
Option 4: 1600
Correct Answer: 1000
Solution : Y=C+I
Y= 100+0.70Y+200.
0.30Y= 300
Y= 1000 crore
Hence, Option A is correct.
Question : An economy is in equilibrium. Its consumption function is C= 200+0.70Y, Investment = 400. Find national income.
Option 2: 1500
Option 3: 2000
Option 4: 2500
Question : In an economy, the investment expenditure is Rs.80 crore and consumption function is C= 80+0.75Y. Calculate Equilibrium level of income.
Option 1: 640
Option 2: 700
Option 3: 840
Option 4: 900
Question : In an economy, the investment expenditure is Rs. 80 crore and consumption function is C= 80+0.75Y. Calculate equilibrium level when planned investment expenditure is increased by Rs. 10 crore.
Option 1: 680
Option 2: 650
Option 3: 700
Option 4: 600
Question : In an economy, the investment expenditure is Rs. 80 crore and consumption function is C= 80+0.75Y. Calculate equilibrium level when planned investment expenditure is decreased by Rs. 20 crore.
Option 1: 540
Option 2: 560
Option 3: 800
Option 2: 780
Option 3: 620
Option 4: 720
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