Advertisements
Advertisements
Question
Suppose for a given economy,
S = -60 + 0.1Y
I = ₹ 4,000 crore
(Where S = Saving Function, Y = National Income and I = Investment Expenditure)
Equilibrium level of Income would be ₹ ______ crore.
Options
4,000
40,000
40,600
60,400
Advertisements
Solution
Suppose for a given economy,
S = -60 + 0.1Y
I = ₹ 4,000 crore
(Where S = Saving Function, Y = National Income and I = Investment Expenditure)
Equilibrium level of Income would be ₹ 40,600 crore.
APPEARS IN
RELATED QUESTIONS
Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure (A) is Rs 50 crores, and MPS is 0.2 and level of income (Y) is Rs 4000 crores. State whether the economy is in equilibrium or not (cite reasons).
Answer the following question.
"Indian Rupee (₹) plunged to an all-time low of ₹ 74.48 against the US Dollar ($)".
− The Economic Times
In light of the above report, discuss the impact of the situation on Indian Imports.
Which of the following is NOT a stock variable?
"In an economy ex-ante Aggregate Demand is more than ex-ante Aggregate Supply."
Explain its impact on the level of output, income and employment.
In the determination of equilibrium income, equilibrium is established at the point where:
At the equilibrium point, which of the following conditions holds?
The 45° line drawn in the income determination diagram represents all points where:
When autonomous investment rises, the Aggregate Demand curve:
To clear the excess demand that emerges after an autonomous rise in expenditure, firms respond by:
In the income–aggregate demand diagram, the points E₁ and E₂ respectively represent:
Given the consumption function \[C = 40 + 0.8Y\] and autonomous investment \[\overline{I} = 10\], the equilibrium level of income is:
If equilibrium income rises by 50 as a result of a 10-unit increase in autonomous investment (ΔI = 10, ΔY = 50), the value of the multiplier is:
At the old equilibrium point E₁, the segment E₁F in the diagram measures:
In the diagram, the increase in output and aggregate demand is shown by E₁G = E₂G, and this magnitude is:
The observation that the final increase in output and aggregate demand exceeds the initial increase in autonomous expenditure reflects:
In the graphical interpretation of the fixed price model, the Y-axis measures:
