Question

Given C = 400+ 0.9Y and l = 4,000, find :
(i) equilibrium Y, (ii) S and C at equilibrium Y.​

Answer 1

$\huge\boxed{\fcolorbox{white}{pink}{Answer:-}}$

Equilibrium Y is found when, Y = C + 1

Substituting the values, we get:

$\sf{Y = 400 + 0.9 + 4,000}$

$\sf{Y - 0.9 Y = 400 + 4,000=> 0.1Y=}$

$\sf{Y = \frac{4,400}{0.1} = 44}$

$\sf{Thus,}$

$\sf{C at\: equilibrium:}$

$\sf{C = C + MP}$

$\sf{= 400+ 0.9(44)}$

$\sf{= 400 + 39, 600 = 44, 000}$

$\sf{ S \: at \: equilibrium:}$

$\sf{S = -S + MP}$

$\sf{-400 +4,400= 4,000}$

Alternatively, in equilibrium, S = I

Since I = 4,000 (given), S must be equilibrium 4,000.

Answer 2

Answer:

Step-by-step explanation:

Consumer's equilibrium - meaning of utility, marginal utility, law of ...... Factor income received from abroad. 400. Indirect tax. 300. Calculate GNP at ...... axis = C+S (AS) in the Y axis.