1. Suppose you are provided with the following data on the components of aggregate

expenditure of Ghana in the year 2020.

Consumption function (C) = Gh2000m + 0.65Yd

Tax function (T) = Gh1400m + 0.2Y

Gross private domestic investment (I) = Gh1800m

Government expenditure (G) = Gh1970

Exports (X) = Gh1300m

Imports function (M) = Gh1220m + 0.2Y

Use the following data above to compute the following:

a) Marginal propensity to consume (MPC) out of national income

b) Marginal propensity to save (MPS) out of national income

c) The savings function as a function of national income

d) What is the value of the equilibrium level of output:

i. Using the aggregate expenditure approach

ii. Using the injections leakages approach.