Question

We suppose that C = 70 + 0.70Y D, I = 90, G = 100, T = 0.10Y (1) Find the equilibrium income

विकल्प

• 706.7

• 700.7

• 701.7

• 702.7

Answer 1

706.7

Explanation:

C = 70 + 0.70YD

I = 90

G = 100

T = 0.10Y

Y = C + I + G

Y = 70 + 0.70Y + 90+ 100

Y = 70 + 0.10YD + 190

y = 70 + 0.70 (Y − T) + 190

Y = 70 + 0.70Y − 0.70 × 0.10Y + 190

Y = 70 + 0.70Y − 0.07Y + 190

Y = 70 + 0.63Y + 190

Y = 260 + 0.63Y

y − 0.634 = 260

0.37Y = 260

Y = `260/0.37`

Y = 702.7