Given: National Income as Y = C + I + G + X - M - Leaving Cert Economics - Question 6 - 2007
Question 6
Given: National Income as Y = C + I + G + X - M.
Y = €1,000m; I = €200m; G = €300m; X = €250m and M = €100m.
Calculate, using the above figures, the level of consump... show full transcript
Worked Solution & Example Answer:Given: National Income as Y = C + I + G + X - M - Leaving Cert Economics - Question 6 - 2007
Step 1
Calculate Total Expenditure: Y = C + I + G + X - M
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Answer
We begin by rearranging the national income equation to solve for consumption (C):
Y=C+I+G+X−M
Substituting the given values:
1,000m=C+200m+300m+250m−100m
Step 2
Simplify the Equation
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Answer
Calculating the expenditure components:
1,000m=C+200m+300m+250m−100m
First, sum up the components on the right:
1,000m=C+200m+300m+250m−100m=C+650m
Step 3
Isolate Consumption (C)
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Answer
Now, isolate C by moving 650m to the left side:
C=1,000m−650m
Thus,
C=350m
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