1.Using aggregate income equal aggregate expenditure method:
"Y=C+I+G"
"Y=30+0.8Y+50+80"
"Y-0.8Y=30+50+80"
"0.2Y=160"
"Y=\\frac{160}{0.2}"
"Y=800"
2.Using withdrawals and equal injection method:
"Value \\; of \\; withdrawals=Value \\; of\\; injections"
"Savings=Investment+Government \\; expenditure"
"Y-C=I+G"
"Y-30-0.8Y=50+80"
"Y-0.8Y=50+80+30"
"0.2Y=160"
"Y=\\frac{160}{0.2}"
"Y=800"
Comments
Leave a comment