in an economy S= -50+0.5 Y is the saving function ( where ,S=saving and Y =National income ) and investment expenditure is Rs. 7,000 calculate the following : (i) Equilibrium level of national income , (ii) consumption expenditure at equilibrium level of national income .

in an economy S= -50+0.5 Y is the saving function ( where ,S=saving an

1.	in an economy S= -50+0.5 Y is the saving function ( where ,S=saving and Y =National income ) and investment expenditure is Rs. 7,000 calculate the following : (i) Equilibrium level of national income , (ii) consumption expenditure at equilibrium level of national income .
Answer» (i) for equilibrium I=S ( investment = saving ) `7,000=-50+0.05y` ( substituting value of I and S ) `0.5Y = 7,000+50` ` =7,050` ` Y=7,050 xx(10)/(5) =14,100` for equilibrium Y=C+I `14,100=C+7,000` `C=14,100-7,000` `=7,100` ( consumption expenditure )