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GNE4133 MACROECONOMICS TRI 2410 r ion: Disposable Income (millions of RM) Consumption (millions of RM Exhibit 2 1. Based on Exhibit 2, a) How much is the autonomous consumption? b) What is the value of the marginal propensity to consume? c) Write an equation for the consumption function. 2. Consider an economy where Y=RM3,500 million, C=RMS500 million +0.80Y, and where autonomous investment is equal to RM200 million. a) Is this economy in equilibrium? Explain. b) What will happen if people try to increase their saving level to RM400 million? National income (millions | Consumption (millions of Savings (millions of RM) of RM) RM) Exhibit 3 3. Based on Exhibit 3, compute a) the APC and APS when the national income is at RM500 million. b) the MPC and MPS when the income level rises from RM500 million to RM550 million. NSO GNE4133 MACROECONOMICS TRI 2410 4. The following prevails in an economy for 2020. National Income Y =RM500 Consumption C =RM260 Investment | =RM100 Government spending G=RM60 Tax T=-RM50+0.25Y Assume that autonomous consumption is RM100 and households consume 80 % of their disposable income. a) Is the above economy in equilibrium? Show necessary calculation. b) Write consumption function in terms of Y