1.

Calculate autonomous consumption expenditure from the following about an economy which is in equilibrium : National income `=500,MPs =0.30`, Investment expenditure = 100

Answer» since d MPS =0.30 therefore MPC =0.70
` Y=C+I (here C = barC +by ,b=MPC)`
Putting the given values , we get
`500 = barC +0.70xx500+100`
`=barC +350+100 =barC+450`
`barC = 500 -450 =50`


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