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CBSE 2020 Class 12 Economics Outside Delhi Set 1

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Question : 22 of 47
Marks: +1, -0
On the basis of following information, identify whether the economy is in equilibrium or not:
 S. No.  Particulars  Amount
 (i)  Autonomous Consumption and Investment Expenditure (A−)\left(\overset{-}{A}\right)  â‚¹ 500 crores
 (Ii)  Marginal Propensity to Save (MPS)  0.2
 (iii)  National Income  â‚¹ 4,000 crores
Solution:  
C‾=500\overline{C}=500
MPS =0.2=0.2
National Income =4,000=4,000 crores
   Income     =4,000   crores   \; \text{ Income } \;\;=4,000 \; \text{ crores }\;
b  =C‾+b(y)b\;=\overline{C}+b(y)
   MPC     =1−MPC\; \text{ MPC } \;\;=1- MPC
=1−0.2=1-0.2
=0.8=0.8
=500+0.8×4,000=500+0.8 \times 4,000
=500+3,200=500+3,200
=₹3,700=\text{₹} 3,700
=(₹3,700=(\text{₹} 3,700 crores is not equal to 4,000 crores )
The economy is not in equilibrium.
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