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 invest

Monjur Alahi

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.


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Salim Ahmed Kawsar

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`" "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"):}`

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