Question

Consider a closed economy IS-LM model. The goods and the money market equations are respectively given as follows:
$𝑌 = 90 + 0.8𝑌_𝑑 − 100𝑖 + 𝐺$
$𝑀_𝑠 = 750 + 0.2𝑌 − 260𝑖$
where, 𝑌 = national income; $𝑌_𝑑$ = disposable income; 𝑇 = total tax given by 𝑇 = 5 + 0.2𝑌; 𝑖 = interest rate; 𝐺 = government expenditure = 300; $𝑀_𝑠$ = constant money supply = 950.
The value of 𝑇 at equilibrium 𝑌 is _______. (rounded off to the nearest integer).

Answer 1

The correct answer is :215