If planned saving is less than planned investment, what changes will bring economy in equilibrium?

The saving curve of an economy makes a negative intercept of ₹ 20 crore and 10% of additional income is saved. Derive the saving and cunsumtions function.

In an economy, an increase in investment leads to increase in national income which is three times more than the increase in investment. Calculate marginal propensity to consume.

The savings function of an economy is S = -200 + 0.25Y. The economy is in equilibrium when income is equal to ₹ 2,000.
Calculate:

1. Investment expenditure at equilibrium level of income.
2. Autonomous consumption.

An economy is in equilibrium. Find Marginal Propensity to Consume from the following:
National income = 2000
Autonomous consumption = 400
Investment expenditure = 200

Tax rates on higher income group have been increased. Which economic value does it reflect? Explain.

As a result of increase in investment by Rs. 125 crores, national income increases by Rs. 500 crores. Calculate marginal propensity to consume.

In the given figure, what does the gap ‘KT’ represent? State any two fiscal measures to correct the situation.

An economy is in equilibrium. Calculate the National Income from the following:

Explain the components of aggregate demand.
OR
State components of AD. Describe any one.