calculate equilibrium level of income for a hypothetical economy, for which it is given that Autonomous investment=Rs 1000 cr And C=100+0.8Y
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Answer:
Equilibrium Level of Income = 5500 cr
Explanation:
Equilibrium level of income (Y) = Consumption (C) + Investment (I)
Y = 100 + 0.8Y + 1000
Y - 0.8Y = 1100
0.2Y = 1100
Y = 5500
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