CBSE 2022 Class 12 Economics Outside Delhi Set 1 (Term 2)

On the basis of following schedule, answer the given questions:

Income (in ₹ crores)	Savings (in ₹ crores)
0	-20
50	-10
100	0
150	30
200	60

Question : 4

Total: 19

In an economy 75 percent of the increase in income is spent on consumption. Investment increased by ₹1,000 crore.
Calculate the total increase in income on the basis of given information.

Solution:

MPC‌=75%=0.75
∆I‌=1,000
∆Y‌=?
K‌=‌

1−MPC

‌=‌

1−0.75

=‌

0.25

=4
K‌=‌

∆Y

∆I

4‌=‌

∆Y

1000

4×1000‌=∆Y
₹4,000‌=∆Y
Thus, the increase in income =₹4,000 crores

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