# Answer to Question #63289 in Macroeconomics for Aisha

Question #63289

Given a hypothetical consumption function of the form:

Y = C + I0 + G0

C = α + β

Where: = Y – T

Y = Income

T = Taxes and that:

Compute the equilibrium level of income and consumption

Y = C + I0 + G0

C = α + β

Where: = Y – T

Y = Income

T = Taxes and that:

Compute the equilibrium level of income and consumption

Expert's answer

Y = α + β + (Y – T) + G0

Y = C

α + β + (Y – T) + G0 = α + β

Y = C = T – G0

Y = C

α + β + (Y – T) + G0 = α + β

Y = C = T – G0

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