in an economy C= 300+0.8Y and T=500 ( where C= consumption ,Y income ,I= income ,I = investment ). Calculate the following j : (i) Equilibrium level if income , (ii) consumption expenditure at equilibrium level .

in an economy C= 300+0.8Y and T=500 ( where C= consumption ,Y income ,

1.	in an economy C= 300+0.8Y and T=500 ( where C= consumption ,Y income ,I= income ,I = investment ). Calculate the following j : (i) Equilibrium level if income , (ii) consumption expenditure at equilibrium level .
Answer» (i) for equilibrium `Y=C+I (or As=AD)` `Y=300+0.8Y+500` (sucstituting Values of C and I) `Y-0.8Y=800` `0.2Y=800 or ` `(2)/(10)Y=800` `Y=4,000` ( this is equilibrium level of income ) (ii) `Y=c+I` `4,000=C+500` `C=4,000-500` `=3,000` ( this is consumption expenditure )