In an economy, `C=1000+0.5 Y` and `I=2,000`, calculate : (i) Equilibrium level of income. (ii) Saving at equilibrium level of income.
In an economy, `C=1000+0.5 Y` and `I=2,000`, calculate :
(i) Equilibrium level of income.
(ii) Saving at equilibrium level of income.
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(i) `Y=C+I=1000+0.5 Y+2000=3000+0.5 Y`
or `0.5 Y=3000`
`Y=6000`
(ii) `S=Y-C=6000-(1000+0.5xx6000)`.
`=6000-4000=2000`.
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