In an economy S= -100 + 0 25Y is the saving function (where S= Saving, and Y= National income) and - Economics - Determination of Income and Employment

Question

In an economy S= -100 + 0 25Y is the saving function (where S=
Saving, and Y= National income)
and investment expenditure = 8,000, Calculate equilibrium level of
income

Rachna Puneet Mehta · Accepted Answer

Solution
S = I in equilibrium
-100 + 0 25Y = 8000
0 25Y = 8000 + 100
0 25Y = 8100
Y = 8100/0 25
Y = 32,400

In an economy S= -100 + 0.25Y is the saving function (where S= Saving, and Y= National income) and investment expenditure = 8,000, Calculate equilibrium level of income.

In an economy S= -100 + 0.25Y is the saving function (where S= Saving, and Y= National income)
and investment expenditure = 8,000, Calculate equilibrium level of income.