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Determination of Income and Employment
Question
Wired Faculty App

Complete the following table.

Income

Saving

MPC

APS

0

-12

    

20

-6

—

—

40

0

—

—

60

6

—

—

 

Answer

 

Income

 

Saving

Consumption

MPC (ΔC/ΔY)

APS (S/Y)

0

-12

12

—

—

20

-6

26

0.70 (=14/20)

-0.30 (= -6/20)

40

0

40

0.70

0.00

60

6

. 54

0.70

0.10

Sponsor Area

Some More Questions From Determination of Income and Employment Chapter

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?