CBSE 2017 Class 12 Economics Delhi Set-3

Question : 1 of 2

Marks: +1, -0

SECTION-B

(Macro-economics)

An economy is in equilibrium. From the following data, calculate autonomous consumption.
(i) Income

=10000

(ii) Marginal propensity to save

={0 . 2}

(iii) Investment

=1500

Solution:

(a)

\;\text " Income "\;=10,000

(b) Marginal Propensity to save

=0.2

(c)

\;\text " Investment "\;\;=1500

{\Y}\;= {\C}+ {\I}

10,000\;= {\C}+1500

{\C}\;=8500

{\MPC}\;=1- {\MPS}

\;=1-0.2

\;=0.80

{\C}\;=\ov{ {\c}}+ {\by}

8500\;=\ov{ {\c}}+0.80 × 10,000

8500\;=\ov{ {\c}}+8000

\ov{ {\c}}\;=8500-8000

=\₹ 500

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