JNU SSS 2011 Q16-23

[RHIDIMA]

Someone plz solve Q16-23 of JNU SSS 2011....

[Ayushya Kaul]

I have the same doubt. Anyone willing to help?

[Amit Goyal]

JNU16-22.png

[sakshi]

thankyou sir

[Ayushya Kaul]

Thanks so much sir :D

[akash27]

Your solution for Q. 21-22 seems incorrect. As mentioned in the question, the relation P=mW/Y is valid only when output is below full employment output.

In that case, W=wY/a = 0.625Y will hold always and R=PY-W. Solving, PY=C+I for Y=32,000 would give P=0.9375 and new share of non-wage income as 1/3.

Therefore, none of the options given are correct.