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Calculate the equilibrium level of income in the economy

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Reference no: EM131179431

Spending is given by the following equation: C = $100 + 0.70Yd and Intended Investment = $125.

(a) Calculate the equilibrium level of income in the economy, andexplainwhy this is the case.

(b) If the current level of income is $500calculateandexplainwhat is happening in the economy?

(c) If the current level of income is $1,000calculateandexplainwhat is happening in the economy?

Reference no: EM131179431

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