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The consumption expenditure and investment demand are ₹ 600 crores and ₹ 300 crores respectively, when income is ₹ 1,000 crores. Calculate : (i) AD, (ii) AS (iii) Saving. |
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Answer» Correct Answer - (i) AD = ₹ 900 crores; (ii) AS = ₹ 1,000 crores; (iii)Saving = ₹ 400 crores. (i) AD = Consumption expenditure ( C) + Investment demand (I) AD = 600+300 = ₹ 900 crores. (ii) We know, aggregate supply (AS) and national income (Y) mean one and the same thing. So, AS = ₹ 1,000 crores. Given AS = 1,000 and C=600 It means, Saving (S) = Y-C= ₹ 400 Crores `" "(becauseY=C+S)` |
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