Page 4 - lesson note-Aggregate Demand and Related Concepts 41
P. 4
e. Aggregate demand function is given in the form
= +
=˃ = 200 + 0.8 + 200 = ˃ = 400 + 0.8
f. At the breakeven level of
national income = .
=> 200 + 0.8 =
=> 200 = − 0.8
=> 200 = 0.2
200
=> = = 1000
0.2
OR
At the breakeven level of national income = 0
=> −200 + 0.2 = 0
=> 0.2 = 200
200
=> =
0.2
=> = 1000.
