In an economy, the consumption function is C = 40 + 0.80Yd and investment is⎯I = ` 80 crore. Th e government expenditure is at ` 40 crore while the tax is a lump sum tax, where T = 0.10.

(a) Find the equilibrium level of income in the three-sector economy.

(b) Find the equilibrium level of consumption and saving at the equilibrium level of income.

(c) Depict the injections leakages equality at the equilibrium level.