helpppp (1 Viewer)

[piyo_extreme]

plz helpp i dunno how to do this question, it's from hsc paper 2003

what is equilibrium level of income if C = 100 + 0.8Y and l = 40

A. 100

B. 140

C. 500

D. 700

 

[samuelblayden]

B!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

 

[d_a_n_z]

plz helpp i dunno how to do this question, it's from hsc paper 2003

what is equilibrium level of income if C = 100 + 0.8Y and l = 40

A. 100

B. 140

C. 500

D. 700

the answer is D...because Y=C+I
therefore Y= 100+.8Y+40
therefore Y-.8Y =140
therfoere .2Y =140
threfore Y=5X 140
=700

 

[Jago]

http://community.boredofstudies.org/showpost.php?p=620063&postcount=2

 

[always_smile]

the answer is D...because Y=C+I
therefore Y= 100+.8Y+40
therefore Y-.8Y =140
therfoere .2Y =140
threfore Y=5X 140
=700

I know this is going to sound stupid but where did you get the eguation Y=C+I. I thought that Y=C+S+T. I am not good at maths. so could you please explain to be the concept Y= C+I.

 

[d_a_n_z]

its not maths...(well that equation) its just in the textbook - doesnt matter if you dont nderstand it, as long as you know y=C+i??

 

[Jago]

the full equation is Y = C + I + G + X - M

 

[word.]

its not maths...(well that equation) its just in the textbook - doesnt matter if you dont nderstand it, as long as you know y=C+i??

(1) Y = E = O

Income(Y) consists of consumption (C) plus savings (S) as in equation (2):

(2) Y = C + S

Expenditure consists of consumption (C) by households and investments (I) by firms as in equation (3):

(3) E = C + I

now Y = E so Y = C + I

1234567890

 

[d_a_n_z]

was that real tim riley. If so....hi!!!

 

[Jago]

Oh, that would make more sense.

 

[always_smile]

its not maths...(well that equation) its just in the textbook - doesnt matter if you dont nderstand it, as long as you know y=C+i??

i cannot find Y=C+I anywhere in my textbook and we did not cover it last year. Thanks for the help/