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In an economy, S = -50 …

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In an economy, S = -50 + 0.5Y in the saving function and investment expenditure is rs. 7000. Calculate (i) Equilibrium level of national income (ii) consumption at equilibrium level of income.

    • Posted by Suryansh Nayan 5 years, 10 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Riddhi Pasari 5 years, 10 months ago

    At equilibrium level savings=investment Therefore, savings are rs. 7000 than income will be 7000= -50+0.5Y i.e.14100 which is equilibrium level of income. Now Y= C+S i.e. 14100= C+7000 therefore C= rs.7100

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