Use app×
QUIZARD
QUIZARD
JEE MAIN 2026 Crash Course
NEET 2026 Crash Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
216 views
in Economics by (80.8k points)
closed by
Estimate the value of ex-ante AD, when autonomous investment and consumption expenditure (A) is 50 crore and MPS is 0.2 and level of income is 300crore.

1 Answer

0 votes
by (81.1k points)
selected by
 
Best answer
`AD=C+I`
`AD=(bar(C )+bY)+bar(I)`
`=(bar(C)+bar(I))+bY`
`=A+bY`
`=50+0.8(300)`
`=50+240`
=290 crore.
NOTE: `A= bar(C )+bar(I)` =Autonomous consumption of autonomous investment expenditure
2. `MPC=1-MPS=1-0.2=0.8`

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...