Question

if in an economy the actual level of income is rs 500 crore whereas the full employment the level of income is rs 800 crore. the mpc is o.75.calculate the increase in investment required to achieve full employment income?? guys please solve this question​

Answer 1

Answer:

Increase in income required = 800-500 =300 crores.

K = ___1___. = _______1______ = ____1_____

1- MPC 1-0.75. 0.25

= 4

Increase in investment required 300 + 4= 75 Crores