In a two sector economy the saving (s) and investment (I) functions are: S = - 10 +0.2Y , I = 3+0.1Y What will be the equilibrium level of income (Y)?

Question

In a two sector economy the saving (s) and investment (I) functions are: S = - 10 +0.2Y , I = 3+0.1Y What will be the equilibrium level of income (Y)?

In a two sector economy the saving (s) and investment (I) functions are:
S = - 10 +0.2Y , I = 3+0.1Y
What will be the equilibrium level of income (Y)?

Monjur Alahi

7 views

2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

Salim Ahmed Kawsar

Equilibrium level of income is attained when S= I
It means : - 10 + 0.2Y = -3 +0.1Y or 0.2Y - 0.1Y = - 3+10
Y = ₹ 70
Equilibrium level of income = ₹ 70.

7 views Answered 2023-02-05 15:29