C = XXXXXXXXXXY - T)
where C = Consumption expenditure, I = Investment, G = Government expenditure,...

Question

C = XXXXXXXXXXY - T)
where C = Consumption expenditure, I = Investment, G = Government expenditure, Y = Ntional expenditure, T = Taxes
What is the national income model
What is the equilibrium level of income
Derive the savings function and find the level of savings in this economy
What can you say about this simple economy

Robert · Accepted Answer

C = 200 + 0.8(Y - T) 
where C = Consumption expenditure, I = Investment, G = Government expenditure, Y = Ntional 
expenditure, T = Taxes 
What is the national income model 
Answer: 
According to national income model, at the equilibrium; 
Y = C + I  + G or 
Y = 200 + 0.8(Y - T) + I + G 
0.2Y = 200 + 0.8T + I + G 
Y = 5*(200 + 0.

C = XXXXXXXXXXY - T) where C = Consumption expenditure, I = Investment, G = Government expenditure, Y = Ntional expenditure, T = Taxes What is the national income model What is the equilibrium level...

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