Answer to Question #92098 in Macroeconomics for Ndienekhonani Nengovhela

Question #92098

Calculate the equilibrium level level of income if c=100 million +0.8y if ī=125 million

Expert's answer

IF:

c=100 million +0.8Y and I=125 million

Y=C+I=100+0.8Y+125=0.8Y+225

0.2Y=225

Y=225/0.2=1125

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