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[gamecw]

What is the equilibrium level of income if C=100+0.8Y and I=40

the answer is 700. how do u do this?

 

[MoonLiteDreamz]

in a closed economy, the Y=I+C Investment and consumption

So since I is 40
Y=40 + C
OR C = Y-40

sub that eqn into the original
Y-40 = 100 + 0.8Y
0.2Y = 140
Y=700..

Lol

 

[MrMe]

ah i did that one

Basically C=100+0.8Y I=40
C+I=140+0.8Y

0.8 is the MPC
Use the multiplier 1/1-MPC = 5

5 x 140 =700

 

[laurieg_]

using the equilibrium formula Y = C + I
where C = 100 + 0.8Y and I = 40
Y = (100 + 0.8Y) + 40
Y = 140 + 0.8Y
rearranging
Y - 0.8Y = 140
0.2Y = 140
Y = 140 / 0.2
so Y = 700

sorry if that doesnt make sense..... not so good at explaining.

 

[gamecw]

thanks one more

http://img244.imageshack.us/my.php?image=ecojg7.jpg

 

[gamecw]

ah i did that one

Basically C=100+0.8Y I=40
C+I=140+0.8Y

0.8 is the MPC
Use the multiplier 1/1-MPC = 5

5 x 140 =700

hmm y is urs different? lol

whats Y again? aggregate supply?

 

[laurieg_]

ah i did that one

Basically C=100+0.8Y I=40
C+I=140+0.8Y

0.8 is the MPC
Use the multiplier 1/1-MPC = 5

5 x 140 =700

haha, your way = 100% easier than my way.

 

[MoonLiteDreamz]

Games. the next one is OJ

Because thats why Y=C+I which is when its at equilibrium.

I dunno the main reason i just did it and guessed that

anyone know where these questions are from in the syllabus topics?

 

[gamecw]

Games. the next one is OJ

Because thats why Y=C+I which is when its at equilibrium.

I dunno the main reason i just did it and guessed that

anyone know where these questions are from in the syllabus topics?

its from 2003's hsc paper

Q8 n 9

Syllabus outcome
8. Equilibrium income H1 H8 H11
9. Aggregate Demand H1 H8 H11

 

[MoonLiteDreamz]

Eh. lol. Man. I'm not too worried about multiple choices and short answers. u can just guess them and make crap...

but the essays... man do I hate those essays..