Given that Y = C + I, where C = 50 + 0.75Y and I = N45m, what is the equilibrium level of income?

musayusufyunusa

5 years ago

Solution to the question above
Y=C+I
Where,C=50+0.75 and I=N45M
C=50+0.75+45M
Collect Like Terms
C=50+45M+0.75
C=95M+0.75
Y(0.75)=95M
Y(1-0.75)=95M
Y0.25=95M
Y=380M

colikstan

3 years ago

Formualar Y= C+1/1-mpc
50+45=95÷0.25 = 380

musayusufyunusa

5 years ago

Y=C+I
Where, C=50+0.75 and I=N45M
C=50+0.75+45M
Collect Like Terms
C=50+45M+0.75
C=95M+0.75
Y(0.75)=95M
Y(1-0.75)=95M
Y0.25=95M
Y=380M

savagemubarak14

1 year ago

I need an explanation on this question afterwards