Question

Calculate saving, AD ,AS and determine equilibrium level if investment is fixed at Rs. 100 crores
`{:("Income"(Rs."crores"),0,100,200,300,400,500),("Consumption"(Rs."Crores"),50,100,150,200,250,300):}`

Answer 1

Equilibruim level of income is Rs. 300 Crores. At this level, AD=AS `=Rs. 300` Crores and Saving= Investment `=Rs. 100` Crores.