Question

Estimate the value of ex-ante AD, when autonomous investment and consumption
expanditure (A) is 50 crores, MPS is 0.2 and level of income is 300 crores
please ans as soon as possible ​

Answer 1

Estimate the value of ex-ante AD, when autonomous investment and consumption expenditure (A) is Rs. 50 crores, and MPS is 0.2 and level of income is Rs. 300 crores. Read more on Sarthaks.com - https://www.sarthaks.com/297592/estimate-the-value-ante-when-autonomous-investment-and-consumption-expenditure-crores

MPC = 1 – MPS MPC = 1 – 0.2 MPC = 0.8 AD = C+ I AD = A + bY AD = 50 + 0.8 (300) AD = Rs. 290 Crores Read more on Sarthaks.com - https://www.sarthaks.com/297592/estimate-the-value-ante-when-autonomous-investment-and-consumption-expenditure-crores

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