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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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The correct Answer is:
(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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SANDEEP GARG-AGGREGATE DEMAND AND RELATED CONCEPTS -UNSOLVED PRACTICALS
  1. The consumption expenditure and investment demand are ₹ 600 crores an...

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  2. Calculate APC and APS from the following schedule : {:(,"Income" (Y...

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  3. At income level of ₹ 5,000 crores, total saving is ₹ 1,000 crores. Cal...

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  4. Calculate MPC and MPS from the following schedule:

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  5. If households save ₹ 500 crores out of an additional income of ₹ 5,000...

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  6. If the total incomes from ₹ 5,000 crores to ₹ 6,000 crores and saving ...

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  7. If MPS is 0.3 and the income increases from ₹ 6,000 crores to ₹ 9,000 ...

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  8. From the following schedule, compute APC, APS, MPC and MPS:

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  9. Complete the following table:

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  10. Complete the following table :

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  11. Complete the followig table :

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  12. Complete the following table :

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  13. Complete the following table :

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  14. Complete the following table:

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  15. If National income is ₹ 50 crore and Saving ₹ 5 crore, find out averag...

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  16. Using the consumption function : C = barc +b(Y), calculate saving at i...

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  17. The saving function for an economy is given as: S = -120 + 0.4(Y). Det...

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  18. The consumption function for and economy is given as: C = 200 + 0.8Y. ...

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  19. If MPC is four times MPS and consumption at zero level of income is ₹ ...

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  20. The consumption curve makes an intercept of ₹ 60 crores on the Y-axis....

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  21. The break-even point for an economy occurs at the income level of ₹ 50...

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