Question

C = 500 + 0.5Y
G = 1200
I = 300
NX = 200+0.3Y
T = 50
What is the equilibrium level of national income

Answer 1

Answer:

C = 500 + 0.5Y G = 1200 I = 300 NX = 200+0.3Y T = 50 Where: G is government expenditure, NX is net exports, I is the level of planned investment, C is household consumption, T is taxes and Y is disposable income.