Assume the economy is closed and there is no government. The aggregate demand components are described below:C = 100 + 0.6Y  (1)I = 200  (2)What is the aggregate demand of equilibrium?

In a closed economy with no government, the aggregate demand (AD) is the sum of consumption (C) and investment (I).

Given the consumption function C = 100 + 0.6Y and investment I = 200, we can express AD as:

AD = C + I AD = (100 + 0.6Y) + 200 AD = 300 + 0.6Y (3)

In equilibrium, aggregate demand equals aggregate supply. In a simple economy like this, aggregate supply is just the total output, which is income (Y). So, we set AD equal to Y:

Y = 300 + 0.6Y

To solve for Y, we subtract 0.6Y from both sides:

0.4Y = 300

Then, divide both sides by 0.4 to solve for Y:

Y = 300 / 0.4 Y = 750

So, the equilibrium level of aggregate demand in this economy is 750.

In a closed economy with no government, the aggregate demand (AD) is the sum of consumption (C) and investment (I).

Given the consumption function C = 100 + 0.6Y and investment I = 200, we can express AD as:

AD = C + I AD = (100 + 0.6Y) + 200 AD = 300 + 0.6Y (3)

In equilibrium, aggregate demand equals aggregate supply. In this simple model, aggregate supply is equal to the total income Y. Therefore, we can set AD equal to Y:

Y = 300 + 0.6Y

To solve for Y, we subtract 0.6Y from both sides:

0.4Y = 300

Finally, we divide both sides by 0.4 to find the equilibrium level of income:

Y = 300 / 0.4 Y = 750

So, the aggregate demand at equilibrium is 750.