(b) Hisham owns a factory producing furniture. He is planning to expand production to attain the long run production goal and enjoy the benefits of economies of scale. Using an appropriate diagram, explain how Hisham decides on the different plant sizes to be used for different quantity of output in short run to attain the long run production goal.

(b) Using the aggregate demand and short run aggregate supply (AD-SRAS) model, illustrate and explain the effects on the equilibrium price level and real Gross Domestic Product (GDP) for each of the following events:

(i) In 2021, the government allocates RM300 million under eBelia programme to provide e-wallet credit of RM150 to eligible youths through the participating platforms. (5 marks)

(ii) The Employee Provident Fund (EPF) announces an increase of the employers' contribution from 11% to 13% for contributors who earn RM4,500 and below. (5 marks)