(d) Given that Planned consumption (c) = $ 40+ 0.75Y Planned investment (I) = $ 60 (i) find out the equilibrium level of income (ii) Show that at equilibrium planned spendings equals the value of output and planned savings equals planned investment.
(d) Given that Planned consumption (c) = $ 40+ 0.75Y Planned investment (I) = $ 60 (i) find out the equilibrium level of income (ii) Show that at equilibrium planned spendings equals the value of output and planned savings equals planned investment.
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 6SQ
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