Finding Equilibrium Level of Income Y

Finding Equilibrium Level of Income Y - Y = 500 0.75 Y –...

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Example: Finding Equilibrium Level of Income Y E = C + I + G in equilibrium E = Y Y = C + I + G Y = 500 + 0.75 (Y – T) + 1500 + 600
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Unformatted text preview: Y = 500 + 0.75 Y – 0.75 (1000) + 1500 + 600 Y – 0.75 Y = 500 – 750 + 1500 + 600 0.25 Y = 1850 Y = (1 / 0.25) 1850 Y = 7400...
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