Explains determination of equilibrium level of income using 'Consumption plus investment' apprach use diagram.

The saving function of an economy is S = - 200+ 0.25Y . The economy is in equilibrium when income is equal to 2,000. Calculate: (a) Investment expenditure at equilibrium level of income , (b) Autonomous consumption , (c ) Investment multiplier.

In an economy, the consumption function is C =500 + 0.75Y , where C is consumption expenditure and Y is income. Calculate the equilibrium level of income and consumption expenditure, when investment expenditure is 5,000.

Explain producer's equilibrium .Use diagram.

In an economy , the investment expenditure is Rs. 70 crores and consumption functin is C= 60 + 0.80 Y . ("i) Determine the equilibrium level of income , (ii) Find the equilibrium income when planned investment expenditure is creased by Rs. 10 crores , (iii) Value of multiplier due to increase in investment expenditure.