"In a two-sector economy without financial market, the final consumption expenditure by households is equal to the factor income received by them". Defend or refute.

Calculate national income from the following data: (i) Gross domestic capital formation 100 (ii) Net change in stocks 10 (iii) Consumption of fixed capital 20 Private final consumption expenditure 500 (v) Government final consumption expenditure 200 (vi) Exports 80 (vii) Imports 70 (Viii) Net indirect tax 60 (ix) Net factor income received from abroad. (-)10.

The equilibrium level of income in an economy is Rs. 5,000 crores. The autonomous consumption expenditure is equal to Rs.250 crores and investment expenditure Rs. 1,000 crores. Calculate : ("i) Consumption expenditure at equilibrium level of national income, (ii) Marginal Propensity to save, (iii) Saving Function , (iv) Investment Multiplier , (v) Break -even level of Income.

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?