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In a two sector economy, the …

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In a two sector economy, the income and consumption function are: Y=C+I and C= 50+0.8Y . If the investment is 50 crore . Calvulate:A) equilibrium level of income. B) level of consumption at equilibrium C) saving at equilibrium

    • Posted by Shruti Hooda 5 years, 10 months ago

    CBSE > Class 12 > Economics
    • 2 answers

    Sakshay Aggarwal 5 years, 10 months ago

    At equilibrium level of income S=I S=50crore Now Y=C+I Y=50+0.8y+50 0.2y=100 Y=500 Put the value of Y in equation( C=50+0.8Y) C=50+0.8×500 C=450

    1Thank You

    Ishant Sharma 5 years, 10 months ago

    A) Y = C+I Y = 50 + .8y + 50 Y = 100 + .8y 1y - .8y = 100 .2y = 100 Y = 100/0.2 Y = 500 B) C = 50 + 0.8(500) C = 50+400 C = 450 C) S = -c + (1-b)y S = -50 + (1- 0.8)500 S = -50 + 0.2* 500 S = -50+ 100 S = 50

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