You are given the following income- expenditures model for the economy of Vulcan.
C = 200 + 0.8(Y - T) T = 50
G = 100
I = 140
(a) What is the equilibrium level of income in Vulcan?
(b) At the equilibrium level of income, what is the amount of consumption?
(c) What is the value of the government spending multiplier in this economy?
(d) If government spending increases to 150, what is the new level of equilibrium income?

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The Answer of You are given the following income- expenditures model for the economy of Vulcan.
C = 200 + 0.8(Y - T) T = 50
G = 100
I = 140
(a) What is the equilibrium level of income in Vulcan?
(b) At the equilibrium level of income, what is the amount of consumption?
(c) What is the value of the government spending multiplier in this economy?
(d) If government spending increases to 150, what is the new level of equilibrium income?

You Are Given the Following Income- Expenditures Model for the Economy