Calculate the equilibrium level of national inc... - JAMB Economics 2023 Question

To find the equilibrium level of national income (Y), you can substitute the given consumption (C), investment (I), and government spending (G) values into the equation Y = C + I + G.

Given:
\[ C = 100 + 0.75Y \]
\[ I = 50 \]
\[ G = 200 \]

Substitute these into the equilibrium equation:
\[ Y = C + I + G \]
\[ Y = (100 + 0.75Y) + 50 + 200 \]

Now, solve for Y:
\[ Y = 350 + 0.75Y \]
\[ 0.25Y = 350 \]
\[ Y = \frac{350}{0.25} \]
\[ Y = 1400 \]

Therefore, the equilibrium level of national income (Y) is 1400.