Answer:
Saving Function of an economy \[(S)=-80+0.6y\] Investment Expenditure in the Economy (/) = Rs. 4,000 We know that at equilibrium level of income, Savings == Investment \[\therefore \] \[4,000=-80+0.6Y\] 4,000+80=0.6 Y \[\frac{4,080}{0.6}=Y\]=Rs. 6,800 Hence, Equilibrium level of income = Rs. 6,800
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