Macro

Income & Employment

Easy

C=40+0.8Y and I =10, then what will be the equilibrium level of income?

-300

-250

300

250

✅ Correct Option: 4

At equilibrium, $Y = C + I$ . Substituting, $Y = 40 + 0.8Y + 10 = 50 + 0.8Y$ . So $0.2Y = 50$ , giving $Y = 250$ .

2025: 13 May Shift 2

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called:

2026: 12 May Shift 1

If the Marginal Propensity to Save (MPS)=0.2.The Value of the multiplier will be-

2025: 26 May Shift 2

The increase in income in an economy is four times more than the increase in investment. What is the value of marginal propensity to consume in this economy?

2026: 21 May Shift 1

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called .......................

2025: 22 May Shift 1

Match List-I with List-II

List-I	List-II
(A). Marginal propensity to consume (MPC)	(I). C/ Y
(B). Consumption function	(II). C + I
(C). Average propensity to consume (APC)	(III). ΔC/ ΔY
(D). Aggregate Demand	(IV). C = c + cY

Choose the correct answer from the options given below:

2025: 28 May Shift 2

Determination of income and employment of a two-sector model is done by:

(A) Ex-ante aggregate demand for final goods.

(B) Ex-post aggregate demand for final goods.

(D) Constant rate of interest.

Choose the correct answer from the options given below:

C=40+0.8Y and I =10, then what will be the equilibrium level of income?

Solution

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