Problem
In a hypothetical economy which is initially in equilibrium, the consumption function is: C 100 + 0.8Y where C denotes consumption and Y income. The level of investment is 100. Why is 600 not an equilibrium level of income? What is the actual equilibrium level of income?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.