In an economy, total savings are Rs. 2000 crore and the ratio of Average Propensity to Save and Average Propensity to Consume is 2: 7. Calculate the level of income in an economy.

Here,

S = Rs. 2000 crore

APS/APC = 2/7,APS = 2/9, APS = S/Y

Hence, S = APS X Y = 2/9 X Y (Where, Y = Income)

or 2000 = 2/9 X Y

or Y = 9/2 X 2000

So, National Income = Rs. 9000 crore