When C = 300 + 0.8Y and Y = 1,000, what is the saving at zero income level?
C + S = Y
At zero income level, C = -S
When Y = 0, C = 300 + 0.8(0) = 300
S = -300
When C = 300 + 0.8Y and Y = 1,000, saving at zero income level will be
In an economy S = - 50 + 0.5Y is the saving function (where S = saving and Y = national income) and investment expenditure is 7,000. Calculate
(i) Equilibrium level of national income.
(ii) Consumption expenditure at equilibrium level of national income.