NextQ107

Suppose for an economy, government proposes two investment projects for construction of expressways with an additional investment of Rs. 2000 crore. Assuming, 80% of increase in income is spent on consumption. Estimate the following on the basis of above information : (a) Change in income (ΔY). (b) Change in consumption (ΔC).

Equilibrium Condition and ApproachesStudy Simplify SpecialPYQ1MCQ
Question 106

To arrive at the value of equilibrium level of income, there must exists an equality between ex-ante ____ and ex-ante ____. (Choose the correct option to fill up the blank) (i) Aggregate Demand, Aggregate Supply (ii) Aggregate Demand, Savings (iii) Aggregate Demand, Investment (iv) Savings, Investment

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