Do question 1 only and show the working steps

SECTION B: STRUCTURED QUESTIONS (60 MARKS) b) For each of the following situations, determine whether the money supply will increase, decrease, or remain unchanged. Question 1 (i) Depositors heard that some banks are going bankrupt. (2 marks) a) Table 2 below shows the national income accounting data for the year 2020 in (11) The BNM lowers the required reserves ratio. (2 marks) Country A. The BNM sells RM200 million of bonds to CIMB Bank Berhad. (2 marks) Items RM (Million) (iii) Depreciation 560 [Total: 20 marks] Gross private domestic investment expenditures 5980 Question 2 Imports 9900 a ) Exports 3000 Differentiate with appropriate examples between contractionary and expansionary monetary policies (10 marks) Federal government expenditures 7900 State and local government expenditures 1653 b) (i) Suppose that there are no crowding-out effects and the MPC is 0.9. By how Personal consumption expenditure 3960 much must the government increase expenditures to shift the aggregate demand curve right by RM10 billion? (3 marks) Transfer payments 300 Receipts of factor income from the rest of the world 930 (1i) Suppose that the government increases expenditures by RM150 billion Payments of factor income to the rest of the world 1890 while increasing taxes by RM150 billion. Suppose that the MPC is 0.80 and that there are no crowding out effects. What is the combined effect of these changes? Why is the combined change not equal to zero? (7 marks) Using expenditure approach, calculate the following values: [Total: 20 marks] (i) Gross domestic product (GDP) (4 marks) Question 3 (1i) Net domestic product (NDP) (2 marks) a ) For each of the following, explain the impact of each event on the aggregate demand (AD), short run aggregate supply (SRAS) and long run aggregate supply (ii) Net national product (NNP) (4 marks) (LRAS) of Malaysia: (iv) Real GDP (assume the price index is 115) (2 marks) (1) It is announced that Malaysia has just entered into a recession. (3 marks) ( V ) GDP per capita (assume the population is 4 million) (2 marks) (11) The price of petroleum decreases by another 60%. (3 marks) Continued... (111) Political and social unrest in Indonesia have caused many foreign firms to relocate their business to Malaysia. (3 marks) b ) (1 ) State the endogenous and exogenous factors of economic growth. (3 marks) (ii) Analyse how technological change affects productivity. (4 marks)