Suppose, following data is presented, for an imaginary economy:

Autonomous Consumption = ₹ 100 crore

Marginal Propensity to Consume = 0.6

Investment = 200 crore.

Identify which of the following is the correct value of national income?

If Multiplier is 2.5,how much investment will be required to generate additional income of 1000 crores?

Match List-I with List-II

Choose the correct answer from the options given below:

Deficit Demand Occurs when :

(A) Equilibrium level of output is less than full employment level

(B) When AD < AS (Aggregate Demand less than Aggregate Supply)

(C) When output decreases

(D) Demand is not enough to employ all factors of production

(E) Prices will decline in the long run

Choose the correct answer from the options given below :

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

The algebraic expression of aggregate demand for final goods can be written as:

Calculate the value of the multiplier from the given consumption function C = 100 + 0.8Y.