Sandeep Garg Macroeconomics Class 12 Solutions Chapter 4 Unsolved Practical Guide

Y = 4000

Substituting the given values:

Given the consumption function C = 400 + 0.8Y, the MPC is 0.8. Y = 4000 Substituting the given values: Given

Y = 1 − 0.8 400 + 250 + 150 ​

Δ Y = 125 The equilibrium level of income can be calculated using the formula: Y = 4000 Substituting the given values: Given