Consider the following economy:(1) C = 1000 + 0.3 (Y - T)(2) I = 700(3) G = 500(4) T = 400Consumption of equilibrium is:

To find the consumption at equilibrium, we need to use the given equations and solve for the value of Y (income).

The consumption function is given by C = 1000 + 0.3(Y - T), where C represents consumption, Y represents income, and T represents taxes.

From equation (4), we know that T = 400. Substituting this value into the consumption function, we have C = 1000 + 0.3(Y - 400).

To find equilibrium, we need to set consumption equal to income, so C = Y.

Substituting C = Y into the consumption function, we have Y = 1000 + 0.3(Y - 400).

Simplifying the equation, we get Y = 1000 + 0.3Y - 120.

Combining like terms, we have Y - 0.3Y = 1000 - 120.

Simplifying further, we get 0.7Y = 880.

Dividing both sides by 0.7, we find Y = 1257.14.

Therefore, the consumption at equilibrium is C = Y = 1257.14.