Given, the consumption function, C = 150 + 0.6Y, where C = consumption

1.	Given, the consumption function, C = 150 + 0.6Y, where C = consumption expenditure, Y = income and investment expenditure = Rs 2,000. Calculate: (i) Equilibrium level of national income (ii) Consumption at equilibrium level of national income (iii) Saving at equilibrium level of national income
Answer» Given, the consumption function, C = 150 + 0.6Y, where C = consumption expenditure, Y = income and investment expenditure = Rs 2,000. Calculate: (i) Equilibrium level of national income (ii) Consumption at equilibrium level of national income (iii) Saving at equilibrium level of national income

Given, the consumption function, C = 150 + 0.6Y, where C = consumption expenditure, Y = income and investment expenditure = Rs 2,000. Calculate: (i) Equilibrium level of national income (ii) Consumption at equilibrium level of national income (iii) Saving at equilibrium level of national income

Answer»

Given, the consumption function, C = 150 + 0.6Y, where C = consumption expenditure, Y = income and investment expenditure = Rs 2,000. Calculate:

(i) Equilibrium level of national income

(ii) Consumption at equilibrium level of national income

(iii) Saving at equilibrium level of national income