21.Given that:

C = 200 + 0.65 Yd

I = RM 795 billions

G=RM300 billions

T=RM 560 billions

X= RM700 billions

M= RM 750 billions

a.Calculate MPC and MPS. Explain your answer.(2 marks)

b.Derive saving function. (1 mark)

c.What is the value of autonomous consumption? (1 mark)

d.What is the value of autonomous saving? (1 mark)

e.What is the equilibrium level of the output in four sectors? Use leakages - injection approach. Draw the equilibrium. (7 marks)

f.If I decreased by RM200, what is the new equilibrium? Use multiplier to answer this question. (4 marks)

g.If T increased by RM60, what is the new equilibrium? Use multiplier to answer this question. (4 marks)

22. Refer to table below. Compute:

a)National income (9.5 marks)

b)Which method did you use to compute GDP market price? (0.5 marks)

Items

RM (million)

Agriculture, Forestry & Fishing

89652

Construction

78456

Mining & Quarrying

12354

Electricity, Gas & Water

8521

Manufacturing

258963

Government Services

456

Wholesale, Retail, Hotel & Restaurant

857

Finance, Insurance & Real Estate

963

Transport, Storage & Communication

1456

Other Services

258

Factor Income Paid Abroad

456

Indirect Taxes

86

Factor IncomeReceived From Abroad

254

Subsidies

352

Depreciation

43

***END OF QUESTIONS***