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The following data shows the consumption function, investment, government expenditure, taxation, export and import for Country F in 2020 (figures are in RM million).
The following data shows the consumption function, investment, government expenditure, taxation, export and import for Country F in 2020 (figures are in RM million). Consumption (C) = 1,000+ 0.6Y Investment (1) Government Expenditure (G) Tax (T) Export (X) Import (M) 400 - 700 = 0.25Y -650 = 280 +0.1Y Based on the above data, answer the question below: (a) derive the new consumption and saving function in words of national income. (b) calculate the national income equilibrium for the above economy by using: i. Aggregate Demand-Aggregate Supply approach. il. Leakage - Injection approach. (c) sketch the diagram to shows the national income equilibrium by using: Aggregate Demand-Aggregate Supply approach. 1. ii. Leakage - Injection approach. (d) compute the value of consumption at national income equilibrium. (4 marks) (5 marks) (4 marks) (5 marks) (4 marks) (2 marks) (e) if Country F considered as open economy, visualize the circular flow income for Country F and explain in detail. (12 marks) (f) list FOUR (4) factors that influence the exports in an open economy for Country F. (2 marks)
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