13 Given that G201 35 C 08 of national income correct to

13. Given that G-20.1 = 35 . C = 0.8 of national income correct to 2 decimals + 25, T = 0.2). + 10, calculate the equilibrium level

Y = C+I+G
Y = C+35+20 = C+55
C = 0.8Yd+25
T = 0.2Y+10
Yd = Y-T
Yd = Y-0.2Y+10
Yd = 0.8Y+10
C = 0.8*(0.8Y+10)+25
C = 0.64Y+8+25 = 0.64Y+33
C = 0.64Y+33
Y = 0.64Y+33+55
Y = 0.64Y+88
0.36Y = 88
Y = 88/0.36 = $244.44

So, equilibrium level of national income is $244.44