The following table relates to Country Z.

[Note: All expenditures and taxes are stated in $.]

Consumption function C	$50,000 + 0.80YD
Government spending function G	$20,000
Investment function I	$10,200
Tax function T	$8,000

i. Calculate the equilibrium level of national income of Country Z. (3 marks)

ii. Determine the change in the country's autonomous consumption expenditure that can cause a drop in the nation's equilibrium national income by $100,000. (3 marks)

iii. With reference to part (ii), what could have possibly caused the change in the consumption expenditures? Briefly explain TWO (2) reasons. (3 marks)

iv. To counter the effects of the change in autonomous consumption expenditure, the government has announced a stimulus package. Using a Keynesian AE-Output diagram, explain how the policy works. (6 marks)

v. Briefly explain the effectiveness of the stimulus policy if marginal propensity to consume decreases from 0.80 to 0.65. A reference to the multiplier is needed. (3 marks)