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Question : Find equilibrium level of income from the following-
Investment = 50
Autonomous consumption= 20
MPC= 0.80

Option 1: 350

Option 2: 600

Option 3: 500

Option 4: 400


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 350


Solution : C=20+0.80Y

I= 50

Y=C+I

Y= 20+0.80Y+50

0.20Y= 70

 Y= 350

Hence, Option A is correct.

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