Macro economics equation

Jan 2017
18
0
Britain
Having some basic problems with economic equations:

Y =0.5Y + 200 +I

becomes: Y = (200+I)/0.5

Can anyone show me the steps to get from the first to the second?

many thanks,

Simon
 

skeeter

Math Team
Jul 2011
3,364
1,855
Texas
$y = 0.5y + 200 + I$

$y - 0.5y = 200 + I$

$y(1-0.5) = 200+I$

$y(0.5) = 200+I$

$y = \dfrac{200+I}{0.5} = 2(200+I)$
 
Jan 2017
18
0
Britain
Thanks!

many thanks for the help -I always seem to fall down on the fact that :

Y - 0.5Y can be factored into y(1-0.5) . The last equation I posted which you kindly solved for me had the same conceptual step.

Maybe it will sink in one day:(
 
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