On the basis of following information, identify whether the economy is in equilibrium or not: (3)Sr. No. Particulars Amount(i)(ii)(iii)Autonomous Consumption and Investment Expenditure (A)Marginal Propensity to Save (MPS)National Income₹ 500 crores0.2₹ 4,000 crores

Consider a simple economy with no government or external sector. Assume that in this economy the consumption (and thus saving) plans of households are always realized. Assume for the current period this economy is characterized by the following data:Y = 2800, Cp = 1800 and Ip = 400where Y is output, Cd is consumption and Ip is planned investment. In this caseGroup of answer choicesoutput is at its equilibrium level but planned saving and planned investment are unequalaggregate planned expenditure is greater than outputtotal investment recorded in the national accounts would be 1000output is not at its equilibrium level and total investment will be smaller than planned investment.

A decrease in the MPC may cause ______________.a.A fall in the equilibrium incomeb.An increase in the equilibrium income.c.It does not affect the equilibrium incomed.The government spending multiplier riseClear my choiceQuestion 8Not yet answeredMarked out of 1.00Flag questionQuestion textThe variable that connects the market of money and the market of goods via investment spending is ________.a.The MPCb.The interest ratec.The MPSd.The CPI

In the Keynesian income-expenditure model, equilibrium income is necessarily equal to a multiple ofGroup of answer choicesthe exogenous component of planned aggregate expenditure which is partly dependent on the autonomous component of taxation when government is includedthe autonomous component of consumption, regardless of whether the economy is closed or openthe sum of investment, government expenditure and net exportsnone of the other alternatives are correct.

Assume the economy is closed and there is no government. The aggregate demand components are described below:C = 100 + 0.6Y (1)I = 200 (2)Now there is a boost in investment, and total investment is now 300.  What is the consumption of equilibrium?

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