#### Question

C = 100 + 0.4 Y is the Consumption Function of an economy where C is Consumption Expenditure and Y is National Income. Investment expenditure is 1.100. Calculate

(i) Equilibrium level of National Income.

(ii) Consumption expenditure at equilibrium level of national income.

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Calculate National Income from the following data:

S.No. |
Particulars |
Rs.in crores |

(i) | Private final consumption expenditure | 900 |

(ii) | Profit | 100 |

(iii) | Government final consumption expenditure | 400 |

(iv) | Net indirect taxes | 100 |

(v) | Gross domestic capital formation | 250 |

(vi) | Change in stock | 50 |

(vii) | Net factor income from abroad | (-)40 |

(viii) | Consumption of fixed capital | 20 |

(ix) | Net imports | 30 |

Solution for question: C = 100 + 0.4 Y is the Consumption Function of an economy where C is Consumption Expenditure and Y is National Income. Investment expenditure is 1.100. Calculate (i) Equilibrium level of National Income. (ii) Consumption expenditure at equilibrium level of national income. concept: Concept of National Income. For the courses CBSE (Arts), CBSE (Commerce), CBSE (Science)