A country's consumption function described as C=500+ 0.7 Y the Autonomous consumption Option 1: 350 Option 2: 500 Option 3: 3500 Option 4: 350

Answer: 500. Solution: In the consumption function C = C + bY, the intercept term C is autonomous consumption. Here C = 500 + 0.7Y, so autonomous consumption is 500.

Macro

Income & Employment

Easy

A country's consumption function described as

C=500+ 0.7 Y

the Autonomous consumption

350

500

3500

350

✅ Correct Option: 2

In the consumption function $C = \bar{C} + bY$ , the intercept term $\bar{C}$ is autonomous consumption. Here $C = 500 + 0.7Y$ , so autonomous consumption is 500.

2026: 21 May Shift 2

What are the equilibrium conditions in two-sector model?

2023: 30 May Shift 1

The Paradox of Thrift means :

2025: 30 May Shift 1

A perfectly elastic aggregate supply curve implies that:

(A) There is fuller utilization of resources in the economy.

(B) There is unemployment of resources in the economy.

(D) Aggregate demand is less in the economy.

Choose the correct answer from the options given below:

2023: 1 June Shift 1

Match List - I with List - II.

	List - I		List - II
(A)	Marginal Propensity to Save	(I)	$\frac{\Delta Y}{\Delta I}$
(B)	Average Propensity to Consume	(II)	$\frac{\Delta S}{\Delta Y}$
(C)	Value of Investment Multiplier	(III)	1 - APS
(D)	Marginal Propensity to Consume	(IV)	$\frac{\Delta C}{\Delta Y}$

Choose the correct answer from the options given below :

2025: 2 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Marginal Propensity to Consume	(I) C/Y
(B) Marginal Propensity to Save	(II) ΔC/ ΔY
(C) Average Propensity to Save	(III) S/Y
(D) Average Propensity to Consume	(IV) ΔS/ ΔY

Choose the correct answer from the options given below:

2025: 2 June Shift 1

Calculate Marginal Propensity to Save (MPS) and Average Propensity to Consume (APC) at income level of 200.

A country's consumption function described as C=500+ 0.7 Y the Autonomous consumption

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A country's consumption function described as

C=500+ 0.7 Y

the Autonomous consumption