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12th Class Economics Solved Paper - Economics 2017 Delhi Set-III

  • question_answer
    An economy is in equilibrium. From the following data calculate autonomous consumption.

    Answer:

    (a) Income = 10,000
    (b) Marginal Propensity to save = 0.2
    (c) Investment = 1500
                            \[Y=C+I\]
                            \[100=C+1500\]
                            \[C=8500\]
                            \[MPC=1MPS\]
                            \[=10.2\]
                            \[=0.80\]
                            \[C=\overline{c}\,+bY\]
                            \[8500\,=\,\,\overline{c}\,+0.80\times 10,000\]
                            \[8500\,=\,\overline{c}\,+\,8000\]
                            \[\overline{c}\,\,=\,8500-8000\]
                            \[=\,\text{Rs}.\,\,\overline{5}00\]


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