Find the equilibrium level of income

Posted on 2014-03-21 10:07:00 in Economics by HWHP

The following information is given :I = $70 million, C = 60 + 0.80y_d’ Y_d = Y . (i) Find the equilibrium level of income; (ii) Find the equilibrium level of income when there is a $ 10 million increase in autonomous planned investment (planned) investment increase from $70 million to $ 80 million and (iii) Establish the multiplier effect of the $10 million increase in autonomous spending.

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