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Determination of Income and Employment
Question
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Complete the following table.

Income (र)

Consumption expenditure (र)

MPC

MPS

1000

900

    

1200

1060

    

1400

1210

    

1600

1350

    

Answer

Income र

Consumption exp. र

MPC (AC/AY)

MPS (1 – MPC)

1000

900

  

—

—

1200

1060

  

160/200 = 0.8

0.2

1400

1210

  

150/200 = 0.75

0.25

1600

1350

.

140/200 = 0.7

0.3

 

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Some More Questions From Determination of Income and Employment Chapter

What do you understand by aggregate demand (AD)?

Explain the meaning of aggregate supply (AS).

Calculate consumption level for Y = र 1000 crores if consumption function is C = 300 + 0.5Y.

State relationship between income and consumption.

What is Breakeven point?

What are the types of Propensity to consume?