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Answer to Question #102978 in Macroeconomics for Alyssa Skinner

Question #102978
Given the following information, Anwser all questions below

C= 400+0.85Y
I=250

a)What is the AE equation for this economy
B) What is the Equilibrium income?
1
Expert's answer
2020-02-17T08:51:27-0500

a. AE equation

AE = C + I

AE = (400 + 0.85Y) + 250


b. Equilibrium income

The equilibrium level of income refers to when an economy or business has an equal amount of production and market demand.


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