In an economy, `C=1000+0.5 Y` and `I=2,000`, calculate : (i) Equilibri – InterviewSolution

1.	In an economy, `C=1000+0.5 Y` and `I=2,000`, calculate : (i) Equilibrium level of income. (ii) Saving at equilibrium level of income.
Answer» (i) `Y=C+I=1000+0.5 Y+2000=3000+0.5 Y` or `0.5 Y=3000` `Y=6000` (ii) `S=Y-C=6000-(1000+0.5xx6000)`. `=6000-4000=2000`.

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