alishbasaeed00

An open economy is in equilibrium when:
𝑌 = 𝐶 + 𝐼 + 𝐺
𝑌𝑑 = 𝑌 ― 𝑇
where
𝑌 = 𝑛𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑖𝑛𝑐𝑜𝑚𝑒
𝐶 = 𝑐𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛
𝐼 = 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
𝐺 = 𝑔𝑜𝑣𝑒𝑟𝑛𝑚𝑒𝑛𝑡 𝑒𝑥𝑝𝑒𝑛𝑑𝑖𝑡𝑢𝑟𝑒
𝑇 = 𝑡𝑎𝑥
Determine the equilibrium level of income given that:
𝐶 = 0.75𝑌𝑑 + 45
𝐼 = 40
𝐺 = 50
𝑇 = 0.2𝑌 + 80