Question
Consider an economy described by the following
equations: C = 100 + 0.6 ∗ (Y − T) (consumption function) I = 200 − 1000 ∗ r (investment function) G = T = 100 (government purchase and tax) where Y is the national income and r is the interest rate. Assume r = 10%, What is the equilibrium income?Solution
The planned expenditure is
PE=0.6Y+240.
Equalize the planned expenditure and the actual expenditure we have
0.6Y+240=Y
which gives Y*= 600.
The Ajanta Cave Paintings are a testimony to the golden age of ______ in India.
When is the first prototype of the Advanced Medium Combat Aircraft (AMCA) expected to be ready?
With reference to ‘Old Pension Scheme’, consider the following statements:
I. Employees get a pension under a pre-determined formula which is...
Lux Frieden has been elected as the new prime minister of which country ?
Who has been appointed as the new Chief of RAW from July 1, 2025?
Who did Novak Djokovic defeat to win his first Olympic gold medal in men's singles tennis at the Paris Olympics 2024?
Prime Minister Narendra Modi recently inaugurated the ‘Kisan Drone Yatra’. He also flagged off _______ ‘Kisan Drones’ in various...
Which Indian Naval ship conducted joint surveillance with Mauritius in June 2025?
Who will be hosting the ICC Men's T20 World Cup 2024 ?
How many Fair Price Shops are covered under the 'Anna Chakra' platform?