A In the classical case. B. If the economy is close to full employment. C. If the economy is in recession. D. None of the above. SECTION B WRITTEN QUESTIONS (30 marks) 2.1. The Covid-19 has come as the shock in most economies and most economic activities have slow down. If South Africa saving function is defined by: $ = -700 + (0.35)Y and autonomous investment is / = 300 and autonomous government expenditure G = 500, while autonomous export is X-450, tax rate is 18% and marginal propensity to import is 0.09. What is the equilibrium level of income, consumption, savings, and the multiplier? (10 marks) 2.2. If government make a 500 government expenditure in the effort to stimulate the economy and reduce tat to 5%. What is the equilibrium level of income, consumption and savings? (10 marks) 1. Give a well label graph, give explanation of the transition of fiscal policy used in question 2.2? (10 marks) 12 . C Partly sunny OLD