From the following data calculate the equilibrium level of national income :

From the following data calculate the equilibrium level of national income :

(i) autonomous consumption = 500

(ii) marginal propensity to save = 0.2

(iii) Investment = 2000

Monjur Alahi

4 views

2025-01-04 04:42

1 Answers

Salim Ahmed Kawsar

Y = C bar + (1 - MPS)Y + I

Y = 500 + (1 - 0.2)Y + 2,000

0.2Y = 2,500, Y = 12,500

4 views Answered 2023-02-05 15:29

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