B) In a closed economy, the functions for consumption, investment, governmentexpenditure and taxation are given as below (in RM million).Consumption function: C=500 + 0.75 YdInvestment function| = 800Government expenditure:G = 400Тахation:T= 200 + 0.2 Yi.Find the equilibrium level of national income for the economy statedabove.ii.Draw a graph to show the equilibrium of national income by using AD=ASapproach.Find the total value of taxation when the national income is at equilibrium.iii.

B) In a closed economy, the functions for consumption, investment, government expenditure and taxation are given as below (in RM million). Consumption function : C=500 + 0.75 Yd Investment function : I = 800 Government expenditure :G = 400 Taxation :T = 200 + 0.2 Y i. Find the equilibrium level of national income for the economy stated above. ii. Draw a graph to show the equilibrium of national income by using AD=AS approach. Find the total value of taxation when the national income is at equilibrium. ii.

B) In a closed economy, the functions for consumption, investment, government expenditure and taxation are given as below (in RM million). Consumption function : C=500 + 0.75 Yd Investment function : I = 800 Government expenditure :G = 400 Taxation :T = 200 + 0.2 Y i. Find the equilibrium level of national income for the economy stated above. ii. Draw a graph to show the equilibrium of national income by using AD=AS approach. Find the total value of taxation when the national income is at equilibrium. ii.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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