In an economy the autonomous investment is 100 and the consumption is C= 80+0.4Y. Is the economy in equilibrium at an income level 400? Justify your answer.

Hi Parichay, this question has been already answered by one of our experts Ms. Monika Sharma. Follow the link given below to view the answer.

https://www.meritnation.com/ask-answer/question/in-an-economy-the-autonomus-investment-is-100-n-c-80-0-4y/income-determination/8819399

We would advice you to not to keep on piling your questions, rather, you should keep posting 1 to 2 questions per subject (Accountancy, Economics and Business Studies) on everyday basis. Ideally, you should go through the study material that is available on our website and look for the answers to the questions. This will not only help you to enhance your analytical abilities but also will help you to learn the application of your knowledge. In this manner, you will gain confidence and will help you in evaluating your preparation.   ​

  • -1
no ... because at equilibrium savings =investment... n
saving= income - consumption
i.e.= 160 while investment = 40
( I= -a+(1-b ) Y )
  • -1
What are you looking for?