InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
In an economy, the actual level of income is ₹ 500 crores whereas full employment of Y is ₹ 800 crore. MPC = 0.75. Calculate how much change in investment is required to achive full employment level in the economy. |
|
Answer» SOLUTION :`""K= (1)/(1-MPC)= (100)/(25) = 4` `""K=4` `""K= (Delta Y)/(Delta I)` `""4= (800-500)/(Delta I)` `""Delta I = (300)/(4) = ₹ 75` crore `{:(,"(RS. in crores)"),("FULL employment level of Y","=800"),("Actual level of Y","=500"),("DESIRED increase in Y",barul"=Rs. 300"):}` |
|