Question

find the equation for the equilibrium level of income in the reduce form? ​

Answer 1

Hey mate!

I am here with your answer!

Most simply, the formula for the equilibrium level of income is when aggregate supply (AS) is equal to aggregate demand (AD), where AS = AD. Adding a little complexity, the formula becomes Y = C + I + G, where Y is aggregate income, C is consumption, I is investment expenditure, and G is government expenditure.

Hope this will help you!

Answer 2

The equation for the equilibrium level of income when aggregate supply (AS) is equivalent to aggregate demand (AD),

Then AS = AD.

Indicates it is the point in which the corporation can trade all of its assets in the market which is designed and they are projected to sell.

The formula becomes Y = C + I + G, where

Y is aggregate income,

C is consumption,

I is investment expenditure, and

G is government expenditure.