Question
In a two-sector economy, the consumption function is
given as: Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â C=100+0.8Y where C is consumption and Y is national income. If autonomous investment (I) is fixed at 200 units, what is the equilibrium level of national income?Solution
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