Given (with disposable income), autonomous investment , government expenditure , and income tax rate percent, the equilibrium level of consumption is ________ (in integer).
IIT JAM 2024 Question 50: Keynesian cross and the multiplier
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Given C = 250 + 0.25 Y_d (with Y_d disposable income), autonomous investment I₀ = 100, government expenditure G₀ = 50, and income tax rate t = 20 percent, the equilibrium level of consumption is (in integer).
Also written as: Given C = 250 + 0.25 Y_d (with Y_d disposable income), autonomous investment I_0 = 100, government expenditure G_0 = 50, and income tax rate t = 20 percent, the equilibrium level of consumption is (in integer).
Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.
What this question tests
This question is on Keynesian cross equilibrium, part of Keynesian cross and the multiplier in Macroeconomics.
How income is determined when output adjusts to planned spending, and what happens to unplanned inventories.
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