CBSE 2014 Class 12 Economics Delhi Set-2
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Question : 3 of 4
Marks:
+1,
-0
Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium.
National income
Marginal propensity to save
Investment expenditure
National income
Marginal propensity to save
Investment expenditure
Solution:
We have,
where,
is investment expenditure which is given as 100. is income which is given as 1200 and, here, is autonomous consumption expenditure is marginal propensity to consumer, - marginal propensity to consume (mps) so, . Thus, putting the values in the equation, or, or, . Thus, autonomous consumption expenditure is 140 .
where,
is investment expenditure which is given as 100. is income which is given as 1200 and, here, is autonomous consumption expenditure is marginal propensity to consumer, - marginal propensity to consume (mps) so, . Thus, putting the values in the equation, or, or, . Thus, autonomous consumption expenditure is 140 .
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