macroeconomic

Consumption (millions of RM) 30 65 Disposable Income (millions of RM) 0 50 100 150 200 250 300 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=RM500 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) 500 350 150 550 390 160 600 430 170 650 470 180 700 510 190 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 =RMS500 Consumption C =RM260 Investment I = RM100 Government spending G=RM 60 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