Determination of Equilibrium Income
Determination of Equilibrium Income: Overview
This topic covers concepts, such as, Algebraic Method of Determination of Equilibrium Income, Determination of Equilibrium Income in Short Run, Graphical Method of Determination of Equilibrium Income and Effect of an Autonomous Change in Aggregate Demand etc.
Important Questions on Determination of Equilibrium Income
According to the Keynesian theory of employment, the state of underemployment is obtained only when the economy is in equilibrium.

In an economy, and (where C = Consumption, Y = Income, I = Investment). Calculate the following: (a) Equilibrium level of income; (b) Consumption expenditure at equilibrium level of income.

If in an economy, C = and I = Rs. crores, where C = Consumption Expenditure, Y = National Income, I = Investment. Calculate the Equilibrium Level of Income.

If in an economy: (a) Consumption function is given by C = , and (b) Autonomous Investment is Rs. crores. Estimate Equilibrium level of Income.

If in an economy: (a) Consumption function is given by C = , and (b) Autonomous Investment is Rs. crores. Estimate Consumption and Savings at the Equilibrium Level of Income.

Given the following information, identify whether the economy is in equilibrium or not:
Particulars | Amount | |
(i) | Autonomous Consumption and Investment Expenditure () | Rs. crores |
(ii) | Marginal Propensity to Consume (MPC) | |
(iii) | National Income | Rs. crores |

In an economy, C = is the consumption function where C is the consumption expenditure and Y is the national income. Investment expenditure is Rs. crores. Is the economy in equilibrium at an income level Rs. crores? Justify your answer.

In an economy the autonomous investment is Rs. and the consumption is C = Is the economy in equilibrium at an income level Rs. ? Justify your answer.

Calculate the equilibrium level of income in the economy, if C = ; and Investment Expenditure = Rs. .

From the following data calculate the equilibrium level of national income:
(i) Autonomous Consumption | Rs. |
(ii) Marginal Propensity to Save | |
(iii) Investment | Rs. |

An economy is in equilibrium. Calculate national income from the following:
(i) Autonomous consumption | Rs. |
(ii) Marginal propensity to save | |
(iii) Investment Expenditure | Rs. |

From the following data about an economy, calculate its equilibrium level of income:
(i) Marginal Propensity to Consume | |
(ii) Autonomous Consumption Expenditure | Rs. |
(iii) Investment Expenditure | Rs. |

Calculate equilibrium national income from the following:
(i) Consumption expenditure at zero income | Rs. |
(ii) Marginal propensity to consume | |
(iii) Investment | Rs. |

Answer the following questions based on the data given below:
Planned level of investment = Rs crores
(a) Determine the Equilibrium Level of Income.
(b) Calculate the saving and consumption expenditure at equilibrium level of income.

The consumption function is given as and autonomous investment is Rs crore. Derive the saving function and calculate the level of income at which saving is equal to investment.

In an economy, and (where C = Consumption, Y = Income, I = Investment). Calculate the following: (a) Equilibrium level of income; (b) Consumption expenditure at equilibrium level of income.

In an economy is the saving function (where S = saving and Y = national income) and investment expenditure is Rs . Calculate: (i) Equilibrium level of national income. (ii) Consumption expenditure at equilibrium level of national income.

In an economy, the consumption function is , where C is consumption expenditure and Y is income. Calculate the equilibrium level of income and consumption expenditure, when investment expenditure is .

The consumption function of an economy is given as: , If planned investments are Rs crores, calculate equilibrium level of national income.

The consumption function is expressed as: (where C = consumption expenditure and Y = National Income). Calculate saving if consumption expenditure at equilibrium level of national income is Rs crores.
