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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
What is marginal propensity to consume?
State the meaning of the following:
Autonomous Consumption
Final goods refer to those goods which are used either for ______ or for ______.
Consumption depends on ______
Aggregate Demand is not determined by which of the following.
Read the following statements carefully:
Statement 1: The consumption curve is an upward sloping straight line curve due to the direct relationship between income and consumption and the assumption of constant Marginal Propensity to Consume.
Statement 2: Aggregate Demand curve and Consumption curve are parallel to each other.
In the light of the given statements, choose the correct alternative from 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?
If in an economy, the Investment Multiplier is 4 and Autonomous Consumption is ₹ 30 crore, the relevant consumption function would be ______.
What is induced consumption?
Which formula correctly defines Marginal Propensity to Consume (MPC)?
Within which range does the value of MPC always lie?
Which formula correctly defines Marginal Propensity to Save (MPS)?
Which equation is equivalent to \[MPC+MPS=1\]?
What is saving at a point where income equals consumption on the 45° line?
What does it mean when the consumption curve is below the 45° line?
For the consumption function \[C=100+0.8Y\], what is autonomous consumption?
