The following information is consumption and investment data for a private closed economy.Figures are in billions of dollars.C = 60 + .6Y I = I₀ = 30
Refer to the above data.In equilibrium, the level of consumption spending will be:

Question

Quizplus · Accepted Answer

To find the equilibrium level of consumption spending, we need to set C equal to Y (output) and solve for Y. 
C = 60 + 0.6Y 
Y = C 
Substituting C into the equation: 
C = 60 + 0.6C 
0.4C = 60 
C = 150

Therefore, the equilibrium level of consumption spending will be $150 billion. 
And adding investment in it,
C + I = 150 + 30 = 180.
So answer is D.

The Following Information Is Consumption and Investment Data for a Private