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CBSE 2020 Class 12 Economics Outside Delhi Set 1

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Question : 22
Total: 47
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
)		  ₹ 500 crores
 (Ii)  Marginal Propensity to Save (MPS)  0.2
 (iii)  National Income  ₹ 4,000 crores
Solution:  
C=500
MPS =0.2
National Income =4,000 crores
‌ Income ‌‌=4,000‌ crores ‌
b‌=C+b(y)
‌ MPC ‌‌=1−MPC
‌=1−0.2
‌=0.8
‌=500+0.8×4,000
‌=500+3,200
‌=₹3,700
‌=(₹3,700 crores is not equal to 4,000 crores )
The economy is not in equilibrium.
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