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Can you help me how to solve the question by showing me the calculation of the question below? QUESTION 2 (25 Marks) Answer the question
Can you help me how to solve the question by showing me the calculation of the question below?
QUESTION 2 (25 Marks) Answer the question below based on the information given. All data are in RM Million. Consumption : C: 300 + 0.8Yd Investment function : I = 240 Government expenditure function : G = 240 Tax function : T = 0.3Y Export function : X = 30 Import function : M = 10 + 0.04Y a. Derive the consumption and savings functions after tax [6 marks] b. Calculate the national income equilibrium by using Aggregate Demand=Aggregate Supply and leakage = injection approach. [10 marks] Calculate the total consumption at the national income equilibrium. [3 marks] (1. Calculate the new national income equilibrium, if autonomous consumption decrease to 100 million and tax = 100 million. Use leakage and injection approach. [6 marks]Step by Step Solution
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