(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.

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 6SQ
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(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.
Transcribed Image Text:(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.
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