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Determination of Income and Employment
Question
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Can consumption exceede income? If yes, what is the saving then?

Answer

Yes, consumption can be greater than income when income is zero or less than subsistence consumption level. Then there is negative saving.

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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?