Find equilibrium Y when C = 100 + 0.5Y and I = 1,000.

2,200

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

4,500

No worries! We‘ve got your back. Try BYJU‘S free classes today!

2,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

733.33

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
2,200

Equilibrium is struck when:

AS = AD

Or, when Y = C + I

Substituting the values of C and I, we get :

Y = 100 + 0.5Y + 1,000

Or Y - 0.5Y = 100 + 1,000

Or, 0.5Y = 1,100

$∴$ $Y = \frac{1, 100}{0.5} = 2, 200.$

Suggest Corrections

Similar questions

Find equilibrium Y when: $C = 100 + 0.5 Y$ and $I = 1, 000$

Given that, $S = - 25 + 0.5 Y$ and $I = 5, 000$ , find equilibrium Y and equilibrium C.

When C = 100 + 0.5Y and Y = 1,000, autonomous consumption will be:

Find equilibrium S and equilibrium I when Y = 4,400, MPC = 0.75, and $¯ C = 100.$

Join BYJU'S Learning Program