Re: JNU 2008 (SSS)

Posted by Econenthusiast on Nov 29, 2017; 5:51am
URL: http://discussion-forum.276.s1.nabble.com/JNU-2008-SSS-tp7608358p7608360.html

I'm getting option a.

W + P = Y
and Sw + Sp = Total savings

Since 0.4 P = Sp and 0.4 Y = P ( because 0.6 Y is W )
Sp = 0.4 x 0.4 Y = 0.16 Y

Thus Sw = Total Savings - 0.16 Y = 0.25 Y - 0.16 Y = 0.09 Y