Calculate equilibrium level of income : (a) Autonomous consumption = 200

Calculate equilibrium level of income :

(a) Autonomous consumption = 200

(b) Marginal propensity to consume : 0.9

(c) Investment expenditure : 1,000

Monjur Alahi

7 views

2025-01-04 04:42

1 Answers

Salim Ahmed Kawsar

Y = C + I and C = 200 + 0.9Y, I = 1,000

Y = 200 + 0.9Y + 1,000

=> 0.1Y = 1,200

∴ Y = 12,000

7 views Answered 2023-02-05 15:29

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