For an economy the following consumption function is given : C = 60+0.75 Y. %3D (a) If investment in a year is $35 crores, what will be the equilibrium level of income or output ? (b) If full-employment level of income (i.e., level of potential output) is $460 crores, what investment is required to be undertaken to ensure equilibrium at full employment ?

For an economy the following consumption function is given : C = 60+0.75 Y. %3D (a) If investment in a year is $35 crores, what will be the equilibrium level of income or output ? (b) If full-employment level of income (i.e., level of potential output) is $460 crores, what investment is required to be undertaken to ensure equilibrium at full employment ?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

Mathematical economics:
For an economy the following consumption
function is given :
C = 60+0.75 Y.
%3D
(a) If investment in a year is $35 crores, what
will be the equilibrium level of income or
output ?
(b) If full-employment level of income (i.e., level
of potential output) is $460 crores, what
investment is required to be undertaken to
ensure equilibrium at full employment ?

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