At equilibrium Y = C + I, so C = Y - I = 1000 - 150 = 850.
MPC = 1 - MPS = 1 - 0.2 = 0.8.
Consumption function: C=cˉ+bY
850=cˉ+0.8(1000)
850=cˉ+800
cˉ=50. Hence autonomous consumption is Rs. 50.
Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium.
National Income = Rs. 1000
Marginal propensity to save = 0.2
Investment expenditure = Rs. 150
Verified 13 Jul 2026.
Rs. 200
Rs. 150
Rs. 950
Rs. 50
Sign in to track your attempts and accuracy.
Sign in to keep a private note on this question. Nothing you write is ever public.
The purchase of war tanks by Indian government from Russia will be classified as
When goods and services are evaluated at constant prices, the measured value is known as ........
If output equilibrium is less than the full employment level, then this condition is known as:
The ratio of nominal to real GDP refer to which economic concept?
When did the Government of India take a decision to demonetize the currency notes of Rs500 and Rs1000?
Work through every CUET UG Macro PYQ, year by year.