rhe equilibrium level of income in an economy is 5,000 crores.the autonomous consumptionis 250crores.and investment expenditure-1000 crores
calculate- break even level of income

Dear Student,

At equilibrium,
Y=C+I5000=C¯+cY+10005000=250+c×5000+10005000=1250+5000c5000c=3750c=0.75At breakeven,Y=CY=C¯+cY=250+0.75×5000=4000
Thus, break even level of income is Rs 4,000 crore.

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