An economy is in equilibrium. From the following data calculate autonomous consumption.
- Income = 10000
- Marginal propensity to save = 0.2
- Investment = 1500
CBSE DELHI - SET 3 2017
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$\text{Y}=\overline{\text{C}}+\text{MPC}\left({\text{Y}}\right)+\text{I}$$10000=\overline{\text{C}}+\left(1-0.2\right)\left(10000\right)+1500$
$\overline{\text{C}}=10000- 8000- 1500$
$=500$
$\overline{\text{C}}=10000- 8000- 1500$
$=500$
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