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CBSE 2017 Class 12 Economics Delhi Set-3

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Question : 1 of 2
Marks: +1, -0
SECTION-B
(Macro-economics)
An economy is in equilibrium. From the following data, calculate autonomous consumption.
(i) Income =10000=10000
(ii) Marginal propensity to save =0.2=0.2
(iii) Investment =1500=1500
Solution:  
(a)  Income =10,000\text{ Income }=10,000
(b) Marginal Propensity to save =0.2=0.2
(c)  Investment =1500\text{ Investment }=1500
Y=C+IY = C + I
10,000=C+150010,000 = C + 1500
C=8500C = 8500
MPC=1−MPSMPC = 1 - MPS
=1−0.2= 1 - 0.2
=0.80= 0.80
C=c‾+byC = \overline{c} + by
8500=c‾+0.80×10,0008500 = \overline{c} + 0.80 \times 10,000
8500=c‾+80008500 = \overline{c} + 8000
c‾=8500−8000\overline{c} = 8500 - 8000
=₹500=\text{₹}500
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