Macro

Income & Employment

Medium

What will be the difference between original and the new equilibrium level of income, when the investment rise from 10 to 20 at given consumption function C= 40 + 0.8Y?

200

100

300

✅ Correct Option: 1

With $C = 40 + 0.8Y$ , MPC $= 0.8$ , so the multiplier is $\frac{1}{1-0.8} = 5$ . Investment rises by $\Delta I = 20 - 10 = 10$ . The change in equilibrium income is $\Delta Y = 5 \times 10 = 50$ .

2026: 13 May Shift 2

The ex -ante output of final goods can also be considered as ?

2025: 29 May Shift 1

What are the equilibrium conditions in the Keynesian model of income determination?

(A) Aggregate demand = Aggregate supply.

(B) Savings= Investment.

(D) Planned Expenditure= Planned Output.

Choose the correct answer from the options given below:

2025: 27 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Final goods market	(I) A + cY
(B) Consumers demand	(II) ΔY/ΔA
(C) Investment multiplier	(III) Ĉ + cY
(D) Linear equation	(IV) a + bX

Choose the correct answer from the options given below:

2025: 15 May Shift 1

The investment multiplier is equal to which of the following?

2025: 15 May Shift 1

If, in an economy, the minimum level of consumption is 45 and 80% of an increase in income(Y) is consumed, what will be the consumption function of this economy?

2026: 13 May Shift 2

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

What will be the difference between original and the new equilibrium level of income, when the investment rise from 10 to 20 at given consumption function C= 40 + 0.8Y?

Solution

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