National IncomeConsumptionInvestment01006020026060400420606005806080074060100090060The equilibrium level of income is:a.500b.400c.800

1. Break Down the Problem

To determine the equilibrium level of income, we analyze the relationship between national income, consumption, and investment. We need to find the level of income where total expenditure (consumption + investment) equals total production (income).

2. Relevant Concepts

The equilibrium condition can be represented mathematically as: $Y = C + I$ where:

• $Y$ is the national income,
• $C$ is consumption,
• $I$ is investment.

3. Analysis and Detail

From the data provided, let’s extract the relevant figures for income, consumption, and investment:

• For $I = 0$, $Y = 100$ → $C = 0 + \text{(investment)} = 0$
• For $I = 100$, $Y = 200$ → $C = 60$
• For $I = 200$, $Y = 400$ → $C = 260$
• For $I = 300$, $Y = 600$ → $C = 404$
• For $I = 400$, $Y = 800$ → $C = 740$
• For $I = 500$, $Y = 1000$ → $C = 900$

Now we will find the total expenditure for each level of income:

• At $Y = 400$: $C = 260$, $I = 200$ → $260 + 200 = 460$
• At $Y = 600$: $C = 404$, $I = 300$ → $404 + 300 = 704$
• At $Y = 800$: $C = 740$, $I = 400$ → $740 + 400 = 1140$
• At $Y = 1000$: $C = 900$, $I = 500$ → $900 + 500 = 1400$

To find equilibrium, we look for where $Y = C + I$.

4. Verify and Summarize

• At $Y = 400$: Total expenditure $460$ which does not equal $400$.
• At $Y = 600$: Total expenditure $704$ which does not equal $600$.
• At $Y = 800$: Total expenditure $1140$ which does not equal $800$.
• At $Y = 1000$: Total expenditure $1400$ which does not equal $1000$.

To find the exact equilibrium, it seems we will have to interpolate or adjust values between 400 and 600, as $Y$ shows increased consumption exceeding income without a suitable match.

Final Answer

The equilibrium level of income is not precisely listed among the options provided. However, from the calculations, we see that while 400, 500, 600, 700, and 800 represent significant points, they do not equalize total expenditure with income accurately. Without further refinement of these models or more detailed figures, we cannot definitively choose an answer solely based on the original data provided. Please check the dataset to ensure all necessary values are present for an accurate assessment.