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 ?
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 3.7P
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![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 ?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2aabd88a-15ab-485a-a80a-b75673ecf32d%2F8dc00073-42c9-4274-9b7b-951de0dbe557%2Fsne5kpk_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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