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    MHB Possible title: Solving for Equilibrium National Income in a Simple Model

    4) Consider the national income model Y =C +I C = aYd + 50 I = 24 1 Yd = Y T T = 20 Show that the equilibrium level of national income is given by Y = 741 20aa Transpose this equation to express a in terms of Y . Hence, or otherwise, …find the value of a for which Y = 155 and …find the value of C: