Please explain the method by which the following schedule has been method. 2018 Economics Board Paper Solution
Please explain the method by which the following schedule has been method. 2018 Economics Board Paper Solution 0 5:22
Sec B v
Given, MPC = 0.6 and initial income is 100 crores. The
following is the schedule:
Consum tion C
avin s S
The table shows the different level of income,
consumption and savings given the MPC as 0.6.
The equilibrium level of income will be 200 crores.
This is because, we know,
Given, Autonomous investment = 80
At, 200 crores level of income,
= 120 + 80
Dear Student, This schedule is made with the help of initial consumption and MPC. When initial Income is 100 crore and MPC = .6, consumption = 60/100* 100= 60 and saving is equal to income - consumption = 40. Regards