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प्रश्न
"In an economy, the autonomous consumption is ₹ 100 and Marginal Propensity to Consume (MPC) is 0.6. If the equilibrium level of Income is 2,000, then the autonomous investment is ₹ 300." Justify the statement with valid calculation.
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उत्तर
Given Information:
Autonomous consumption `bar("C")` = 100
MPC = 0.6
Equilibrium level of Income (Y) = ₹ 2000
Autonomous Investment (I) = ₹ 300
At equilibrium level, Y = C + I
Thus, ₹ 2000 = ₹ 1300 + I
I = ₹ (2000 - 1300)
I = ₹ 700
At this level of income, Y should be ₹ 700 but it is given ₹ 300 which is not valid.
Working Note:
C = `bar("C")` + bY
= ₹ 100 + 0.6 (2000)
= ₹ 100 + 1200
= ₹ 1300
संबंधित प्रश्न
State the meaning of the following:
Autonomous Consumption
Final goods refer to those goods which are used either for ______ or for ______.
Aggregate Demand is not determined by which of the following.
On the basis of following schedule, answer the given questions:
| Income (in ₹ crores) |
Savings (in ₹ crores) |
| 0 | -20 |
| 50 | -10 |
| 100 | 0 |
| 150 | 30 |
| 200 | 60 |
- Calculate Marginal Propensity to Save (MPS) at ₹ 150 crores level of income.
- What is the value of Autonomous Consumption?
Statement 1: Consumption function assumes that, consumption changes at a constant rate as income changes.
Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income (Y).
In light of the given statements, choose the correct alternative from the following:
If in an economy, the Investment Multiplier is 4 and Autonomous Consumption is ₹ 30 crore, the relevant consumption function would be ______.
Which formula represents the consumption function?
At zero income, what happens to consumption?
How does the consumption curve begin and move as income changes?
What is autonomous consumption?
Which component of \[C=\bar{C}+cY\] is independent of income?
What is induced consumption?
If \[MPC=0.8\], what is MPS?
Which equation is equivalent to \[MPC+MPS=1\]?
What does it mean when the consumption curve is below the 45° line?
What does it mean when the consumption curve is above the 45° line?
For the consumption function \[C=100+0.8Y\], what is autonomous consumption?
