Calculate the Equilibrium level of Income for an imaginary economy, if it is given that: (a) Saving function, S = (–)500 + 0·2 Y where S = Savings, Y…

At the equilibrium level of income, Savings = Investment, i.e. S = I(–) $\displaystyle 500$ + $\displaystyle 0$·$\displaystyle 2$ Y = $\displaystyle 1{,}500$$\displaystyle 0$·$\displaystyle 2$ Y = $\displaystyle 1{,}500$ + $\displaystyle 500$ = $\displaystyle 2{,}000$Y = $\displaystyle 2{,}000$ ÷ $\displaystyle 0$·$\displaystyle 2$Y = ₹ $\displaystyle 10{,}000$ croreHence, the equilibrium level of income is ₹ $\displaystyle 10{,}000$ crore.