Nov 2006 paper 3 question 21

[arvind0708]

21 In a closed economy with no government C = 30 + 0.8 Y and I = 50, where C is consumption, Y is
income and I is investment.
What is the equilibrium level of income?
A 64 B 80 C 250 D 400

help

 

[JACK HERROR]

equilibrium NY occurs when injection = withdrawal
therefore savings = investment
-30+0.2y = 50
therefore y = 400