Help with equilibrium level of income (1 Viewer)

[Cityboy]

Does anyone understand how to calculate the national equilibrium level of income if so can you help me this question

C= 20 + 0.8Y
I= 50
G= 180
T = 200
M= 38
X= 35

 

[sunjet]

Euilibrium when S = I, where I = 50

You've got the consumption function, now get the savings function

C= 20 + 0.8Y
S = -20 + 0.2Y
50 = -20 + 0.2Y
Y = 350

 

[lum]

uh, what you said seems to make sense, but i'm pretty sure mine gives the right answer

at equilibrium, total income = aggragate demand, Y = C + I + G + X - M

therefore Y = 20 + 0.8Y + 150 +180 + 35 -38
Y = 0.8Y + 347
0.2Y = 347
Y = 1735

 

[Cityboy]

Yeah lum is correct

 

[sunjet]

hrm.. thought there was more too it
that always give questions like how i did it according to my teacher :s

 

[Cityboy]

For me this section is by far hardest part of the economics course, because it involves maths.

 

[sunjet]

uh, what you said seems to make sense, but i'm pretty sure mine gives the right answer

at equilibrium, total income = aggragate demand, Y = C + I + G + X - M

therefore Y = 20 + 0.8Y + 150 +180 + 35 -38
Y = 0.8Y + 347
0.2Y = 347
Y = 1735

How'd you get I = 150?

 

[jonnathann]

sunjet, ur answer is assuming the economy is closed (i.e. it doesn't X or M). But it dus so you must take into account the other components

 

[lum]

oops, it's 50 so take away 500, gives you 1235, we all make mistakes ya know

 

[wesandash]

Would someone please help me with the following situation?
C =200 + .60Yd
T= 10 + .10Y
I= 45 + .16Y
G=46
M= 20 + .20Y
X= 65

Please help me calculate the equilibrium output for this economy!

 

[Sparcod]

Mate. Shouldn't you have finished your HSC 8 years ago? Look at your profile if you don't know what I mean but anyways..

I dont think there's anything that difficult in the HSC. Trust me.