Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium:

National Income = 500

Marginal Propensity to Save = 0.30

Investment expenditure =100

Given, Y = 500,

MPS = 0.30,I = 100, $\overline{C}$ =?

b or MPC = 1- MPS =1-0.30 =0.70

Y = C +I or Y = $\overline{C}$ + bY + I

500 = $\overline{C}$ +0.70x500 +100

500 = $\overline{C}$ +350 +100

$\overline{C}$ = 500 - 450 = 50

Autonomous consumption ($\overline{C}$) = 50