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12th Class Economics Solved Paper - Economics 2015 Outside Delhi Set-III

  • question_answer
               
    An economy is in equilibrium. Calculate the national Income from the following:
    Autonomous Consumption = 120
    Marginal Propensity to Save = 0.2
    Investment Expenditure = 150

    Answer:

                    \[a=120\]
                 MPS = 0.20
    (b) \[MPC=1-MPS=10.20=0.86\]
                        I = 150
                       Y =?
                       \[Y=C+I\]
                       \[C=a+by\]
                           \[=120+0.8Y\]
                       \[Y=120+0.8Y+150\]
          \[1Y0.8Y=270\]
                  \[0.2Y=270\]
    \[\therefore \]               \[Y=\frac{270}{0.20}=1350\]


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