help :-dse 2006 question 25

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VK7
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help :-dse 2006 question 25

VK7
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Re: help :-dse 2006 question 25

Sris
INCOME= SHARE GIVEN TO WORKERS*MPC OF WORKERS+ SHARE GIVEN TO CAPITALISTS*MPC OF CAPITATISTS  + INVESTMENT


Y=( Y/2)3/4+(Y/2)1/2+100

SOLVING THIS U WILL GET Y=800/3

Y'=(3Y'/4)3/4+ (Y'/4)1/2 +100

SOLVING THIS U WILL GET Y'=1600/5

NOW Y' - Y =1600/5-800/3 = +160/3....SO OPTION A



( MPC= MARGINAL PROPENSITY TO CONSUME OUT OF INCOME)
VK7
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Re: help :-dse 2006 question 25

VK7
thanks man,
Did the same but calculated incorrectly