Home
Class 12
ECONOMICS
Calculate saving, AD ,AS and determine e...

Calculate saving, AD ,AS and determine equilibrium level if investment is fixed at Rs. 100 crores
`{:("Income"(Rs."crores"),0,100,200,300,400,500),("Consumption"(Rs."Crores"),50,100,150,200,250,300):}`

Text Solution

Verified by Experts


Equilibruim level of income is Rs. 300 Crores. At this level, AD=AS `=Rs. 300` Crores and Saving= Investment `=Rs. 100` Crores.
Promotional Banner

Topper's Solved these Questions

  • INCOME DETERMINATION AND MULTIPLIER

    SANDEEP GARG|Exercise HOTS HIGHER ORDER THINKING SKILLS QUESTION|14 Videos

  • INCOME DETERMINATION AND MULTIPLIER

    SANDEEP GARG|Exercise TRUE AND FALSE|12 Videos

  • GOVERNMENT BUDGET AND THE ECONOMY

    SANDEEP GARG|Exercise Unsolved Practicals|8 Videos

  • MEASUREMENT OF NATIONAL INCOME

    SANDEEP GARG|Exercise Miscellaneous Practicals|16 Videos

Similar Questions

Explore conceptually related problems

Suppose investment in the economy is fixed at Rs.40 crores. The consumption expenditure, at different levels of income , is given in the following schedule: {:("Income"(Rs."crores"),200,300,400,500,600,700),("Consumption"(Rs."crose"),220,300,380,460,540,620):} On the basis of the given schedule, answer the following questions: (i) Calculate AD and AS all level of income. (ii) At what level of income will the economy be at equilibrium? (iii)State the level if income where total saving is negative. (iv) Are saving and investment equal at the equilibrium level of income? (v) Calculate MPC and MPS ,when the incme increases from Rs. 400 crores to Rs. 500 crores. (vi) What will be the income level of Rs. 300 crores?

The saving at different levels of income are given in the following schedule: {:("Income"(Rs."crores"),0,200,400,600,800,1000),("Saving"(Rs."crores"),-120,-60,0,60,120,180):} On the basis of the given schedule, answer the following question: ("i) Calculate MPC at diffferent levels of income. (ii) If investment is Rs. 120 crores, determine the equilibrium level of income. (iii) Derive the Consumption and Saving function . (iv) What is the break- even level of Income.

if MPC is 0.9 and increase in investment is Rs. 100 crore , find out increase in national income

AS a result of increase in investment by Rs. 20 crore , national income increase by Rs. 100 crore , find out MPC.

Calculate MPS and Multiplier (k) from the following data : {:("Income"(Rs.),100,200),("Saving"(Rs.),40,100):}

Calculate AD, AS for every level of income and the equilibrium level, from the following schedule: (assuming that the investment is fixed at 40 crores)

Find income level if S=-75+0.25Y and saving level is 100 crore.

in an economy investment is increased by Rs. 300 crore .If MPC is 2/3 , calculate increase in national income .

Calculate consumption level for the equation Y= Rs. 1,000 crore if consumption function is C=300+0.5 Y.

SANDEEP GARG-INCOME DETERMINATION AND MULTIPLIER-MCQ
  1. Calculate saving, AD ,AS and determine equilibrium level if investment...

    Text Solution

    |

  2. At equillibrium level:

    Text Solution

    |

  3. If MPC is 0.6 the investment multiplier will be:

    Text Solution

    |

  4. The maximum value of multiplier is when the value of MPC is

    Text Solution

    |

  5. When planned saving is less than planned investment, It indicates a si...

    Text Solution

    |

  6. If MPC=MPS, the value of multiplier is:

    Text Solution

    |

  7. Multiplier is related to MPC

    Text Solution

    |

  8. When economy decides to save the whole of its additional income, the v...

    Text Solution

    |

  9. refers to a situation when AD is equal to AS beyond the full employme...

    Text Solution

    |

  10. The algebracic relationship between multiplier and MPC is

    Text Solution

    |

  11. If saviing funciton of an economy is given as, S-=40+0.4(Y), then MPC ...

    Text Solution

    |

  12. The value of multiplier is

    Text Solution

    |

  13. If MPC =1 the value of multiplier is:

    Text Solution

    |

  14. If MPC=0 the value of multiplier is

    Text Solution

    |

  15. MPC=0.75 and as a result of Multiplier Effect, National Income increas...

    Text Solution

    |

  16. When aggregate demand is greater than aggregate supply, inventories.

    Text Solution

    |

  17. If C=20+0.80Y and Investment Expenditures is 50 crores, then Equilibri...

    Text Solution

    |

  18. When planned saving is less than planned investment, then,

    Text Solution

    |

  19. If MPS=0.20. and investment is increased by 400 crores, the total incr...

    Text Solution

    |

  20. If MPS=0.30, Autonomous Consumptions=50crores and Investment=100crores...

    Text Solution

    |

  21. If the marginal propensity of consume is greater than marginal propens...

    Text Solution

    |