Given that :
C = 100 + 0.75Y
Planned Investment = ₹1000 Crores
The equilibrium level of income is :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹4400 Crores
Given:
C = 100 + 0.75Y
Planned investment, I = ₹1000 crores
At equilibrium, income (Y) equals aggregate demand, which is C + I here.
Y = 100 + 0.75Y + 1000
Y − 0.75Y = 1100
0.25Y = 1100
Y = 1100 / 0.25 = ₹4400 crores
NCERT (2026-27): Introductory Macroeconomics — Chapter 4: Determination of Income and Employment, 4.2 Determination of Income in Two-sector Model
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