C = 40 + 0.8Y and I = 10, then what will be the equilibrium level of income?

250

The equilibrium level of income is determined by setting aggregate demand equal to aggregate supply.

In the given scenario, the aggregate demand (C) is given by C=40+0.8Y and I =10.

The equilibrium level of income is found by setting C+I=Y

40+0.8Y+10=Y

50=0.2 Y

Y=50/0.2=250

So, the equilibrium level of income is 250