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Question : Find equilibrium level of income from the following
Investment = 250
Autonomous consumption= 50
MPC= 0.80

Option 1: 1100

Option 2: 1000

Option 3: 1200

Option 4: 1500


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: 1500


Solution : C= 50+0.80Y

I=250

Y=C+I

Y= 50+0.80Y+250

0.20Y= 300

Y= 1500 crore.

Hence, Option D is correct.

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