calculate equilibrium level of income if C= 500 million, I = 500 million and c =...

Question

Question

calculate equilibrium level of income if C= 500 million, I = 500 million and c = 0,6

business economics

Answer 1

Answer #1

At equilibrium

Y= C + cY + I

Y= 500 + 0.6Y + 500

0.4Y= 1000

Y= 2500

Equilibrium level of income= 2500.

Answer 2

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