The Center for Monitoring Indian Economy has calculated the consumption function for 2019-20 as C = 180 + 0

Economics Dec 19, 2021

The Center for Monitoring Indian Economy has calculated the consumption function for 2019-20 as C = 180 + 0.70 Y and the private investment function as: I = 450. In the light of the above solve the following: a) find the equilibrium level of income b) Find equilibrium level of consumption c) find equilibrium level of savings d) show that at equilibrium level, aggregate demand equals aggregate supply and savings equals investments.