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

1.	In an economy S = - 50 + 0.5Y is the saving function (where S = saving and Y = national income) and investment expenditure is 7,000. Calculate (i) Equilibrium level of national income. (ii) Consumption expenditure at equilibrium level of national income.
Answer» In an economy S = - 50 + 0.5Y is the saving function (where S = saving and Y = national income) and investment expenditure is 7,000. Calculate (i) Equilibrium level of national income. (ii) Consumption expenditure at equilibrium level of national income.

In an economy S = - 50 + 0.5Y is the saving function (where S = saving and Y = national income) and investment expenditure is 7,000. Calculate (i) Equilibrium level of national income. (ii) Consumption expenditure at equilibrium level of national income.

Answer»

In an economy S = - 50 + 0.5Y is the saving function (where S = saving and Y = national income) and investment expenditure is 7,000. Calculate

(i) Equilibrium level of national income.

(ii) Consumption expenditure at equilibrium level of national income.