Given the following set of data calculate equilibrium income. C = 100 + 0.8 y. Investment = Rs. 260 Cr. Option 1: Rs. 1,500 Cr Option 2: Rs. 2,300 Cr Option 3: Rs. 2,200 Cr Option 4: Rs. 1,800 Cr

Answer: Rs. 1,800 Cr. Solution: At equilibrium, Y = C + I. Y = 100 + 0.8Y + 260 Y - 0.8Y = 360 0.2Y = 360 Y = 1800 crore

Macro

Income & Employment

Easy

Given the following set of data calculate equilibrium income.

C = 100 + 0.8 y.

Investment = Rs. 260 Cr.

Rs. 1,500 Cr

Rs. 2,300 Cr

Rs. 2,200 Cr

Rs. 1,800 Cr

✅ Correct Option: 4

At equilibrium, $Y = C + I$ .

$Y = 100 + 0.8Y + 260$

$Y - 0.8Y = 360$

$0.2Y = 360$

$Y = 1800$ crore

2025: 15 May Shift 1

Given the equation of the consumption function as $C = \bar{C} + cY$ , what does $\bar{C}$ donate?

2023: 1 June Shift 1

If MPC and MPS are equal, then the value of multiplier is :

2025: 3 June Shift 2

Even if income is zero, some consumption still takes place, which is independent of income. This type of consumption is called?

2026: 12 May Shift 1

Increase in Taxes will lead to__________

2024: 16 May

If there is no government and no foreign trade, then :

2025: 14 May Shift 1

Match List-I with List-II

List–I	List–II
(A) Marginal propensity to consume	(I) ΔS/ΔY
(B) Marginal propensity to save	(II) ΔC/ΔY
(C) Average propensity to consume	(III) S / Y
(D) Average propensity to save	(IV) C / Y

Choose the correct answer from the options given below: