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=0.2160
Y=800
2.Using withdrawals and equal injection method:
Valueofwithdrawals=Valueofinjections
Savings=Investment+Governmentexpenditure
Y−C=I+G
Y−30−0.8Y=50+80
Y−0.8Y=50+80+30
0.2Y=160
Y=0.2160
Y=800
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