Asume consumption is represented by the following c 400 , Business Economics

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Asume consumption is represented by the following c 400

Assume consumption is represented by the following: C = 400 + .5Y. Also assume that planned investment (I) equals 100.

(a)Given the information, calculate the equilibrium level of income.

(b) Given the information, calculate the level of consumption and saving that occurs at the equilibrium level of income.

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Business Economics: Asume consumption is represented by the following c 400

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