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17. (a) On the basis of …

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17. (a) On the basis of following information, identify whether the economy is in equilibrium or not : Sr. No. Particulars Amount (i) Autonomous Consumption and Investment Expenditure (Ā) ` 500 crores (ii) Marginal Propensity to Save (MPS) 0.2 (iii) National Income ` 4,000 crores 3 (b) Answer the following questions on the basis of given figure : (i) What does the shaded area AOB indicate ? (ii) What is the significance of point B ? 1 + 2 For Visually Impaired Candidates only : (b) (i) Define saving function. (ii) What is the significance of dis-savings ?

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