Macro

Income & Employment

Easy

Calculate the value of the multiplier and find the value of the consumption quantity that is independent of income from the following equation.

C=150+0.75Y

4 and 150

150 and 0.4

4.5 and 150

4.2 and 225

✅ Correct Option: 1

From $C = 150 + 0.75Y$ , the MPC is $0.75$ , so the multiplier $k = \frac{1}{1-0.75} = 4$ . Autonomous consumption, which is independent of income, is the intercept 150. Hence 4 and 150.

2026: 13 May Shift 1

The change in consumption per unit change in income is known as:

2025: 21 May Shift 1

In a hypothetical economy, the consumption function is given as C = 100 + 0.75Y. The autonomous investment in the economy is 200 crores. The equilibrium level of income would be______?

2026: 23 May Shift 1

The components of consumption function are:

2023: 29 May Shift 2

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

2024: 16 May

It is market where economic agents freely exchange their own goods:

2024: 16 May

When there is unexpected rise in the sales

Calculate the value of the multiplier and find the value of the consumption quantity that is independent of income from the following equation. C=150+0.75Y

Solution

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CUET Economics Past Year Questions (Topic-Wise)

Calculate the value of the multiplier and find the value of the consumption quantity that is independent of income from the following equation.

C=150+0.75Y