In a 3-sector model, suppose C = 8 + 0.6 Y d , I = 60, G = T = 10, where C is consumption, I is investment, Y d is disposable income, G is…

CA Foundation · Business Economics · PYQS · January 2025
In a 3-sector model, suppose C = 8 + 0.6 Y d , I = 60, G = T = 10, where C is consumption, I is investment, Y d is disposable income, G is government expenditure and T is tax. Find out the equilibrium level of national income.
(A) A. 120
(B) B. 150
(C) C. 180
(D) D. 200

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. 150

Topics: Determination of National Income

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