From the data given below calculate (i) Investment expenditure (ii) Co

1.	From the data given below calculate (i) Investment expenditure (ii) Consumption expenditure (a)Equilibrium level of Income 5000, (b) autonomous consumption 500 (c) MPC 0.4
Answer» We know that C = c + bY , by putting value We get C = 500 + 0.4 x 5000, C = 2500 Y = C + I 5000 = 2500 + I I = 2500

From the data given below calculate (i) Investment expenditure (ii) Consumption expenditure (a)Equilibrium level of Income 5000, (b) autonomous consumption 500 (c) MPC 0.4

Answer»

We know that C = c + bY , by putting value We get

C = 500 + 0.4 x 5000, C = 2500

Y = C + I

5000 = 2500 + I

I = 2500

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From the data given below calculate (i) Investment expenditure (ii) Consumption expenditure (a)Equilibrium level of Income 5000, (b) autonomous consumption 500 (c) MPC 0.4

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