According to the table

Make use of the information on the four-sector Keynesian expenditure model given in the diagram and table and answer Questions below: R C+I+G M C +I D C F B H 800 The following information is related to the kbove diagrata Consumption expenditure by households R150 million when they earn no income Capital formation by firms R150 million Government expenditure R400 million Personal income tax rate 20% Exports R.200 million Imports R100 million If the economy's aggregate output is currently at 2000, which of the following statements would be true of this economy? a There is a situation of disequilibrium with expenditure lower than income There is unemployment There is a positive level of savings and a decrease of the levels of inventories The economy is most likely in an upswing phase of the business cycle GELEE a &c a &d b & c b & d Not [1], [2], [3] or [4] 18. Given the state of the economy (as given in Q17) what economic policies would you recommend? Reduce government expenditure Reduce the tax rate Reduce the interest rate Encourage exports Encourage unions to lower their wage demands CECEE a&e b, c & d a, b, d & e b, c, d & e Not [1], [2], [3] or [4]