The following data regarding the performance of country A in 2020:

All values are in RM (Millions)

Consumption (C) = RM100 million + 0.5 Yd

Investment (I) = RM10 million

Government (G) = RM50 million

Tax (T) = 0.2 Y

Based on the previous data, calculate:

1. National income level using the AD-AS approach.
2. Determine the value of the tax multiplier in this economy.
3. Determine the level of national income using the multiplier principle when investment increases by RM20 million.
4. Determine the level of deflation or inflation gap for country A if the full employment level is approximately RM290 million.

Answer rating: 100% (QA)

Macroeconomic Analysis of Country A 2020 Data We can analyze Country As economy using the provided information and the ADAS approach 1 National Income ... View the full answer