Economics · Macroeconomics
The algebraic expression for equilibrium income (Y) in the two-sector model where autonomous expenditure is A and marginal propensity to consume is c is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Y = 1 − cA
- 2Y = A1 − c✓
- 3Y = A + c
- 4Y = A(1 − c)
Correct answer
Y = A1 − c
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