Find out income level when consumption = र 1200 crores and consumption function is C = 100 + 0.5Y.

Solution

1200 space equals space 100 space plus space 5 divided by 10 straight Y space equals space 100 space plus space 1 half straight Y 1 half straight Y space equals space 1200 space minus space 100 space equals space 1100 space space or space space space straight Y space equals space 1100 space cross times space 2 space equals space space Rs. space 2200 space crores.

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