In an economy C=200+0.5Y is the consumption function where C is the consumption expenditure and Y is the national income. Investment expenditure is 40
In an economy C=200+0.5Y is the consumption function where C is the consumption expenditure and Y is the national income. Investment expenditure is 400 crore. It is the economy in equilibrium at incom level 1500 crores? Justigy your answer.
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Equilibrium level of income=1200crores So, economy is not in equilibrium at given income of 1500crores
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