Question
(a) Assume the following data (in RM million) for an economy: Consumption function : C = 800 + 0.75Yd Income : 1800 Investment : 500
(a) Assume the following data (in RM million) for an economy:
Consumption function : C = 800 + 0.75Yd
Income : 1800
Investment : 500
Net export : 756
Government expenditure : 200
Tax : 200
Calculate the following value:
(i) Expenditure multiplier; (3 marks)
(ii) Total consumption; (3 marks)
(iii) Equilibrium level of income. (4 marks)
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
