As we know that the equilibrium level of national income in two sector model is determined where, Question 1.

As we know that equilibrium level of national income is determined under the given condition of aggregate demand and aggregate supply, and has tendency to stick to that level i.e., where aggregate demand is equal to aggregate supply.

Is study of cotton textile industry a microeconomic study or macroeconomic study?

There is increase in investment of Rs 1000 crore in an economy. [AI 2006] Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure (A) is Rs 50 crores, and MPS is 0.2 and level of income (Y) is Rs 4000 crores.

[AI 2013 (Set II)] If MPC and MPS are equal, value of multiplier is, If the ratio of marginal propensity to consume and marginal propensity to save is 4 : 1, the value of investment multiplier will be 4. As a result of increase in investment national income increases by Rs 600 crore.

(ii) Consumption expenditure at equilibrium level of national income. Answer: Question 7. c = 50 + 0.5Y is the consumption function; where C is consumption expenditure and Y is national income and investment expenditure is 72000 in an economy. =, Question 1.

Derive the multiplier when MPS is: Use diagram.

(a) 0 (b) 1 Answer:Â The level at which the economy is in equilibrium, i.e., where aggregate demand = aggregate supply, is called effective demand. Investment in an economy increases by Rs 700 crore. (ii) Indirect Taxes. (a) At equilibrium planned savings are equal to planned investment.

Question 2. If marginal propensity to consume is 0.75, calculate the increase in investment. What is the total increase in income?

We know that one manâs expenditure is another manâs income. [1 mark] There is infinite increase in income. (c) Decision whether to invest or not The investor goes on making additional investments until M.E.I becomes equal to the rate of interest.

Short Answer Type Questions (3-4 Marks), Chapter 1 Introduction to Macroeconomics and its Concepts, Chapter 2 National Income and Related Aggregates, Chapter 5 Aggregate Demand and Its Related Concepts, Chapter 6 National Income Determination and Multiplier, Chapter 7 Excess Demand and Deficient Demand, Chapter 8 Government Budget and the Economy, Chapter 1 – Indian Economy on the Eve of Independence, Chapter 5 – Human Capital Formation in India, Chapter 7 – Employment: Growth, Informalisation and other Issues, Chapter 9 – Environment and Sustainable Development, Chapter 10 – Inflation Problem and Policies, Class 12 Physical Education Revision Notes, Previous Year Question Paper for Class 12, CBSE Previous Year Question Paper for Class 10, CBSE Previous Year Question Paper for Class 12. [])), +((!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![]+[])+(!+[]+(!![])+!![])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![])+(!+[]-(!![]))+(!+[]+(!![])+!![]+!![])+(+!![])+(!+[]+(!![])+!![]+!![]+!![]+!![])+(!+[]+(!![])+!![]+!![])+(+!![]))/+((!+[]+(!![])+!![]+[])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![]+!![])+(+!![])+(!+[]+(!![])-[])+(!+[]+(!![])+!![]+!![]+!![])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![])+(!+[]+(!![])+!![]+!![]+!![])+(!+[]+(!![])+!![])+(!+[]+(!![])+!![]+!![]+!!