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If the consuption function in an economy...

If the consuption function in an economy is C=50+0.75Y` and the autonomous investmenet is 30 crore, calculate the equilibrium level of income.

Text Solution

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Rs.320 crore
Hint. At equilibrium AD=AS
Since AD=C+I, and AS=Income (Y)
`therefore Y=C+I Rightarrow Y=(50+.075Y)+30, Find Y`
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