Answer to Question #92658 in Macroeconomics for MMATHAPELO MARIA MASHEGO

Question #92658

calculate the equilibrium level of income if C=R100 million+0.8Y and I=R125 million.

Expert's answer

Y = C + I + G

Y =R100 million+0.8Y + R125 million.

Y= 100+0.8Y+125=225+0.8Y

0.2Y=225

Y= R1125 million

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