Question

In an economy, actual level of income is 500 whereas the full employment level
of income is a bit more than this. Three-fourth of the income is consumed in the
economy. If there is an increase in investment in the economy by 75, calculate (@
(a) new income level at full employment level
(b) change in savings
(C) change in consumption​

Answer 1

Explanation:

In a economy , the actual level of income is Rs. 500 crores, whereas, the full employment level of income is Rs. 8000 crores. If one - fourth of additional income is saved, calculate increase in investment required to achieve full employment level of income.