--%>
Assignment Help - homework help

Determining national income

Suppose an economy is in equilibrium condition. Its consumption function is C = 300 +0.8Y and investment is 700 find out its national income.

E

Expert

Verified

C = 300+0.8 Y
Y = C+I
Y = 300 + 0.8Y + 700
=1250

   Related Questions in Microeconomics

  • Q : Stabilization function Choose the right

    Choose the right answer of thefollowing problem. In performing its stabilization function, it may be appropriate for the nation's central bank (the Federal Reserve in the United States) to take actions to: A) increase taxes to reduce inflation. B) increase interest ra

    		•
  • Q : Competition-Social Welfare Only the

    Only the purely competitive firm which is as well a price taker in the labor market maximizes the profit by employing labor where: (1) Quantity of the labor employed is maximized. (2) Average wage rate equivalents labor's marginal revenue product. (3) Average wage rat

    		•
  • Q : Resources to escape state of destitution

    When an individual or family lacks adequate resources to escape a state of destitution, their circumstances are described as: (1) involuntary poverty. (2) relative poverty. (3) a vicious cycle of poverty (4) institutional poverty. (5) a culture of pov

    		•
  • Q : Problem on Minimum Wage Laws The

    The Minimum wage legislation is UNLIKELY to aid: (i) Skillful workers who compete with untrained workers. (ii) Untrained workers who don’t lose their jobs. (iii) Buyers of goods which are more capital intensive associative to the buyers of labor intensive goods.

    		•
  • Q : Competitive Profit Maximization Can

    Can someone please help me in finding out the accurate answer from the following question. The profit-maximizing competitive firm hiring from the competitive labor market will be in balance or equilibrium where: (i) w = MRC. (ii) MPP = MRC. (iii) VMP = MPP. (iv) VMP =

    		•
  • Q : Problem on equal marginal utilities per

    Substitution takes place when prices change and hence demand curves are negatively-sloped since of the behavior of consumers which most directly underpins the law of: (1) Equivalent marginal utilities per dollar. (2) Diminishing net utility. (3) The income effect. (4)

    		•
  • Q : Concept of Horizontal Equity Equity of

    Equity of fairness is an ambiguous idea, in part since people’s personal qualities can vary greatly. Conversely, that policymakers should treat people equally when they are roughly identical in the characteristics thought relevant for government policies is exte

    		•
  • Q : Market supply Schedules for a good The

    The market supply schedule for a resource or good shows the: (i) Points in time if production is scheduled for completion. (ii) Amounts sellers wish could be given at prices exceeding the costs. (iii) Maximum quantities which will be offered for sale at particular pri

    		•
  • Q : Estimate Gini index Computing the

    Computing the proportion of the area above a Lorenz curve although below the 45-degree reference line relative to the whole area below the reference line yields a numeric measure of inequality termed as a/an: (w) Gini index. (x) inequality coefficient

    		•
  • Q : Economic losses driven down to zero

    Exit by a competitive industry will arise till economic: (1) profits are driven to zero. (2) profits counterbalance accounting losses. (3) incomes are equalized for comparable workers. (4) costs are sufficiently below accounting losses. (5) losses are driven down to z

    		•