In a hypothetical economy which is initially in equilibrium


Problem

In a hypothetical economy which is initially in equilibrium, the consumption function is: C 100 + 0.8Y where C denotes consumption and Y income. The level of investment is 100. Why is 600 not an equilibrium level of income? What is the actual equilibrium level of income?

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Microeconomics: In a hypothetical economy which is initially in equilibrium
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