Question

Suppose C = 40 + 0.8Y D. T = 50, I = 60, G = 40, X = 90, M = 50 + 0.05Y. Find equilibrium income

विकल्प

• 560

• 700

• 660

• 440

Answer 1

560

Explanation:

C = 40 + 0.8YD

T = 50

I = 60

G = 40

X = 90

M = 50 + 0.05Y

(1) Equilibrium level of income

Y = C + c (Y−1) + I + G + X - M − mY

Y = `"A"/(1 - "c" + "m")` Where, A = C − CT + l + G + X − M

= `("C" - "cT" + "I" + "G" + "X" - "M")/(1 - "c" + "m")`

= `(40 - 0.8 xx 50 + 60 + 40 + 90 - 50)/(1 - 0.8 + 0.05)`

= `(40 - 40 + 60 + 40 - 90 - 50)/(1 - 0.75)`

`140/0.25`

= `140/25 xx 100`

= 560