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Solution :

Given <br> Autonomous consumption `(barC)`=100 <br> MPS(s)=0.2 <br> i.e. MPC (c )=1-MPS=1-0.2=0.8 <br> 1=200 <br> y=?? <br> We know that at equilibrium, <br> Y=C-I <br> i.e. Y = `(barC)`+cY+I <br> implies Y=100+0.8Y+200 <br> implies Y=0.8Y+300 <br> implies Y-0.8Y=300 <br> implies0.2Y=300 <br> so, Y=1,500