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Calculate consumption expenditure in the economy …

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Calculate consumption expenditure in the economy whose equilibrium level of income is 20000 autonomous consumption is 500 and marginal propensity to save is 0.5

Posted by Sasant Gupta 6 years, 9 months ago

CBSE > Class 12 > Economics

1 answers

Lakshay Sharma 6 years, 8 months ago

C= a+by

Where "a" is autonomous consumption, "b" is marginal propensity to consume, "y" is national income.

C= 500+ 0.5(20000)

Note :- marginal propensity to consume = 1-marginal propensity to save= 1-0.5= 0.5

C= 500+10000= 10500

1Thank You

ANSWER

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