equilibrium income

[ranjankumarnayak5]

If the consumption function is given by C=100 +.6(y-T) and planned investment is
150, government spending is 50, and T is 100, then equilibrium income is
(A ) 600
(B) 7 s0
(c)400
( D) 3s0

[SM]

Hi Rajan!

Y= C+I+G .

Substituting C and the values of I and G, we have:

Y= 100+0.6(Y-100)+ 150+50

you get the answer as 600

[ranjankumarnayak5]

thanks a lot. I got it.