Question : An economy is in equilibrium. Its consumption function is C= 200+0.70Y, Investment = 400. Find national income.
Option 1: 1000
Option 2: 1500
Option 3: 2000
Option 4: 2500
Correct Answer: 2000
Solution : Y=C+I
Y= 200+0.70Y+400
0.30Y= 600
Y= 2000 crore
Hence, Option C is correct.