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CBSE-Economics-Class-12-2017-->View question

By:Aparna-Dasgupta

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## An economy is in equilibrium. From the following data about an economy calculate autonomous consumption. - CBSE Economics class 12 2017

(i) Income = 500

(ii) Marginal propensity to save = 0.2

(iii) Investment expenditure = 800

(-Appeared in CBSE economincs class 12, 2017 Set 1-Delhi paper)

By:Aparna-Dasgupta

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## Answers

Given that

Income (Y) = 5000

Marginal propensity to save (s) = 0.2

Therefore, marginal propensity to consume = 1 -0.2 =0.8

I= 800

As we know that

Y =C+I

C =Y -1

C = 5000 – 800 = 4200

c bar= 200

Thus, autonomous consumption is 200.

milan-ransingh

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