Estimate the value of ex-ante when autonomous investment and consumption expenditure (A) is 50 crores and MPS is 0.2 and level of income is 300 crores

Measure the level ex-ante aggregate demand when autonomous investment and consumption expenditure(A) is rupee50 crore, and MPS is 0.2 and level of income(Y) is ruppe 4000crores. State whether the economy is in equilibrium or not (cite reason) Hint: The aggregate demand (AD) function is given as AD=A+b(y) Given A=50, b or MPC=1-MPS =1-0.2=0.85 Putting the values A and b in AD function we get AD=50+0.8 xx4000 =3250crores Economy is not at equillibrium as AD of 3250crores is less than Y (or AS) of 4000 crores,

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.

If C=20+0.80Y and Investment Expenditures is 50 crores, then Equilibrium income is