In an economy the autonomus investment is 100 n C=80+0.4Y . Is the economy in eqilibrium at an income level 400?
Dear Student,
First of all let us note down the value provided in the question:
I = 100
Now as we know, at equilibrium level
Y = AD,
or, Y = C + I
Thus, economy will be in equilibrium level at a income of Rs 300 and not Rs 400.
Hope this answers your query.
Keep Posting!!!
First of all let us note down the value provided in the question:
I = 100
Now as we know, at equilibrium level
Y = AD,
or, Y = C + I
Thus, economy will be in equilibrium level at a income of Rs 300 and not Rs 400.
Hope this answers your query.
Keep Posting!!!