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Y= Worker's income(W) + Profits(P)
G= P/4
Public investment = P/8
Private Investment = 0.5 * 3P/4 =3P/8
Total investment = P/2
Given K/Y =4
dK = 4 dY
dK= P/2
P/2 = 4 dY
P/2Y = 4 dY/Y
Given dY/Y=6
So P/2Y=24
P/Y =48 ....Ans
Now new case,
G= P/2
Public investment = P/4
Private Investment = 0.5 * P/2 =P/4
Total investment = P/2
Total investment is same as earlier case so growth rate is same and social spending is higher
Please confirm the answer
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