What is the expression for the equilibrium level of output A

What is the expression for the equilibrium level of output? Assume that the expression for total expenditure is E Ao-cr+ b-(1-)Y 1-b-(1-T) + cir 1 b-(1-t) 1+ b-(1-t) 0 1+ b (1)

Solution

A is the correct option

Reason

Since in equilibrium, expenditure will be equal to output.

Thus, E=Y

Y=A0-cr+b(1-T)Y

Now, after simplifying, we get the expression given in option 1.