Equilibrium Income Calculator — Two-Sector Economy

Formula

Y = (C̄ + I) ÷ (1 − MPC)

Worked example

With C̄ = 100, I = 200 and MPC = 0.8, equilibrium income is 1,500.

The interactive calculator on this page accepts your own question values and displays the final answer with step-by-step working.

Frequently asked questions

What formula does the Equilibrium Income Calculator use?

This calculator uses: Y = (C̄ + I) ÷ (1 − MPC). The interactive page shows the working step by step.

Is the Equilibrium Income Calculator free?

Yes. It is free to use and does not require a login.

Can I use the calculator for exam preparation?

Yes. Use it to check numerical working and then practise writing the formula, substitution and final answer yourself.

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