If the value of Investment Multiplier is 5 and the increased income is ₹ 800 crore in an economy, then find the value of change in the investment in the economy.

If there is an increase in investment by Rs100 in an economy, MPC = 0.9, choose the correct sequence with reference to the working of the investment multiplier.

(A) Producers increase their planned output further by (0.9)10, the income of the economy goes up by (0.9)10 and consumption demand increases further by (0.9)² 10.

(B) This process goes on, round after round.

(C) Income increases by 100, Consumption expenditure increases by 90 and therefore, aggregate demand goes up by 90.

(D) The total increment in the income will be 1000.

Choose the correct answer from the options given below:

Identify the variable on which the overall level of employment and prices in the economy depends upon?

The sum total of MPC and MPS is always equal to:

At a particular price level, when aggregate demand for final goods equals aggregate supply of final goods, the product market reaches to its __________.

Value of MPS (Marginal Propensity to Save) is increased from 0.4 to 0.5. What would be the impact on Multiplier?

From the following figure, how to obtain an aggregate demand function?