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 National Income (Y)
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Answer
We know the formula for National Income:
Y=C+I+G+X−M
We will substitute the known values into the equation.
Step 2
Substitute Known Values
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Answer
Replacing the known values, we have:
1,000m=C+200m+300m+250m−100m
Step 3
Simplify the Equation
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Answer
Now, we will simplify the right-hand side:
1,000m=C+200m+300m+250m−100m 1,000m=C+650m
Step 4
Solve for Consumption (C)
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Answer
To isolate C, we subtract 650m from both sides:
C=1,000m−650m C=350m
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