Related InterviewSolutions

• Calculate consumption expenditure in the economy whose equilibrium level of income is 20,000, autonomous consumptions 500 and marginal propensity to save is 0.5.
• Find Consumption Expenditure following :National Income = Rs. 5,000Autonomous Consumption = Rs. 1,000Marginal Propensitv to Consume = 0.8
• Complete the following table :Income(Rs.)(Y)Saving(Rs.)Average Propensity to Consume (APC)Marginal Propensity to Consume (MPC)0- 40--50-20--1000-0.6150300.8-20050--
• Complete the following table :income(Y)APCMPCConsumption expenditure1,0000.505002,0000.55--2,5000.60--
• Complete the following table :Income(Rs.)(Y)Consumption Expenditure(RS.)Marginal Propensity to Save (MPS)Average Propensity to Save (APS) 080--1001400.4-200--0-240-0.20-2600.80.35
• Complete tire following table :Income(Y)Marginal Propensity to consume(MPC)Saving(s)Average propensity to consume(APC)100400.60200-90---1250.50
• Explain how the economy achieves equilibrium level of income using Savings Investment (S-I) approach.
• "Economists are generally concerned about the rising Marginal Propensity to Save (MPS) in an economy”. Explain why?
• If in an economy :(a) Consumption function is given by C = 100 + 0.75Y, and(b) Autonomous investment is Rs.150 crores.Estimate (i) Equilibrium level of income and (ii) Consumption and Savings at the equilibrium level of income.
• An economy is in equilibrium. Find Autonomous Consumption Expenditure :National Income = 1,600 Investment Expenditure = 300Marginal Propensity to Consume = 0.8