The autonomous consumption in an economy is Rs. 500 crore and total personal disposable income is Rs. 5000 crore. If the marginal propensity to consume (mpc) is 0.8, find out the level of aggregate consumption.

Question

We know that consumption function is:&nbsp;&nbsp;&nbsp;&nbsp;C =¯c + MPC. YAt euilibrium level of Income in the economy...

Accepted Answer

We know that consumption function is:&nbsp;&nbsp;&nbsp;&nbsp;C =¯c + MPC. YAt euilibrium level of Income in the economy...