Find National Income from the Following: Autonomous Consumption = Rs100 Marginal Propensity to Consume = 0.80 Investment = Rs 50 - Economics
Find national income from the following:
Autonomous consumption = Rs100
Marginal propensity to consume = 0.80
Investment = Rs 50
C = Rs 100
MPC (b) =0.80
I= Rs 50
By substituting the values, we get
Y=100 + 0.8Y + 50
0.2 Y = 150
Y= Rs 750
National Income =Rs 750
Concept: Concept of National Income
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