2 Given is the information of an economy. = 700+ 0.7Ya...
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2 Given is the information of an economy. = 700+ 0.7Ya <= 450 Consumption (C) Investment (1) Government expenditure (G) 500 Tax (T) <<=350 Export (X) <<=400 Import (M) <=300 (All values are in RM million) Based on the information, answer the following questions. a) Find the value of marginal propensity to save (MPS). b) Derive the savings function from the consumption function. c) Calculate the equilibrium level of national income using the aggregate expenditure-aggregate supply approach. d) the full employment level of income is RM4,000 million, is there an inflationary or a deflationary gap? Draw a graph to show the situation. 2 Given is the information of an economy. = 700+ 0.7Ya <= 450 Consumption (C) Investment (1) Government expenditure (G) 500 Tax (T) <<=350 Export (X) <<=400 Import (M) <=300 (All values are in RM million) Based on the information, answer the following questions. a) Find the value of marginal propensity to save (MPS). b) Derive the savings function from the consumption function. c) Calculate the equilibrium level of national income using the aggregate expenditure-aggregate supply approach. d) the full employment level of income is RM4,000 million, is there an inflationary or a deflationary gap? Draw a graph to show the situation.
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a Find the marginal propensity to save MPS The MPS is the change in savings caused by a oneunit chan... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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