Calculate equilibrium level of income for a hypothetical economy, for which it is given that: Autonomous Investments = ₹ 500 crores, and Consumption function, C = 100 0.80Y - Economics | Shaalaa.com

Economic Equilibrium: How It Works, Types, in the Real World

Determine the equilibrium income, Y, and interest rate, r, given the following information about the commodity market C=0.7 Y+85 I=-50 r+1200 and the money market Ms=500 L1=0.2 Y L2=-40 r+230 Sketch the IS and LM curves on the same diagram. What effect would an increase in the value of autonomous investment have on the equilibrium values of Y and r ? | Numerade