Complete the following table.

Level of income (र)

Consumption expenditure (र)

MPC

MPS

400

240

—

—

500

320

—

—

600

395

—

—

700

465

—

—

Solution

Level of Consumpt. lncome(र) Exp. (र) Y C		Savings S	AY	AC	AS	MPC (AC/AY)	MPS (ΔS/ΔY)
400	240	160	—	—	—	— ?	—
500	320	180	100	80	20	80/100 = 0.8	20/100 = 0.2
600	395	205	100	75	25	75/100 = 0.75	25/100 = 0.25
700	465	235	100	70	30	70/100 = 0.7	30/100 = 0.3

Some More Questions From Determination of Income and Employment Chapter

For Daily Free Study Material Join wiredfaculty