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Determination of Income and Employment
Question
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Calculate consumption level for Y = र 1000 crores if consumption function is C = 300 + 0.5Y.

Answer

Consumption level C = 300 + 5/10 x 1000 = 300 + 500 = र 800 crores.

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Some More Questions From Determination of Income and Employment Chapter

State relationship between income and consumption.

What is Breakeven point?

What are the types of Propensity to consume?

How does MPC affect level of income?

Distinguish between APC and MPC, The value of which of APC and MPC can be greater than one and when?

State relationship between income and saving.

What is saving function (or Propensity to save)?