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1. The following questions are based on the information provided in Table 1. Answer all questions and please provide your answer to the nearest two

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1. The following questions are based on the information provided in Table 1. Answer all questions and please provide your answer to the nearest two (2) decimal points. Table 1 The Disposable Income Disposable Income Consumption Saving ($) ($) ($) 200 210 220 240 260 255 280 10 300 285 Based on the information provided in Table1; 1. Complete Table 1. [2 Marks] 2. Derive the following functions; i. Consumption (C) function ii. Saving (S) function [4 Marks] 3. Suppose there is an addition of the following expenditure components; Gross Investment (Ig) = 10, Net Export = 5 and Government expenditure (G) = 20. Provide your answer to the nearest three (3) decimals point, find the; i. YBreakeven (YBe) level [2 Marks] li. Yequilibrium,(Ye:) level [2 Marks] 4. Suppose the existing equilibrium is at Yes. If the government impose tax by the value of $20 billion. Find the new equilibrium point (Yez). [2 Marks] 5. Given full-employment income is at Yfe = $300 billion. Based on the last equilibrium level at Ye2, describe the current economic status and provide suggestion on how does the government bring the economy to full-employment level. [4 Marks] 6. Using Y-AE model, provide a graphical illustration that explains the whole process from (3) to (5). [4 Marks]

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