Question : An economy is in equilibrium. Its consumption function is C= 100+0.70Y, Investment = 200. Find national income.
Option 1: 1000
Option 2: 1200
Option 3: 1400
Option 4: 1600
Correct Answer: 1000
Solution : Y=C+I
Y= 100+0.70Y+200.
0.30Y= 300
Y= 1000 crore
Hence, Option A is correct.