Y = 1 − 0.8 400 + 250 + 150
Y = 1 − MPC C a + I + G
Y = 1 − 0.7 50 + 200
Y = 1000 The equilibrium level of income can be calculated using the formula: Y = 1 − 0
Δ Y = 125 The equilibrium level of income can be calculated using the formula: Y = 1 − 0
Δ Y = 0.4 50
Δ Y = 1 − MPC Δ G