Calculate equilibrium income
Given,
Consumption function =600+0.7Y
Calculate equilibrium income when investment I=20
In equilibrium,
Y=C+I
Y=600+0.7Y+20
Y=620+0.7Y
Y-0.7Y=620
0.3Y=620
Y=620/0.3
Y=2066.67
Equilibrium income Y=2066.67
Labels: Economics Study, Mathematical problem
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