Question

In an economy C=200+0.75Y is the consumption function where C is consumption expenditure and

Y is national income. Investment expenditure is 4000. Calculated equilibrium level of income and

consumption expenditure.
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Answer 1

Answer:

C = 50 + 0.5 Y is the consumption function where C is consumption expenditure and Y is National Income and investment expenditure is 2,000 in an economy.

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