Investment = 450 Consumption = 700 + 0.7Yd Government expenditure= 500 Taxes = 350 Export = 400 Import = 300 (All values are in RM million)   Based on the information, answer the following question   Find the value of marginal propensity to consume (MPC) & marginal propensity to save (MPS).   Derive the saving function     Calculate the equilibrium income level using the aggregate expenditure – aggregate supply approach

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Investment = 450

Consumption = 700 + 0.7Yd

Government expenditure= 500

Taxes = 350

Export = 400

Import = 300

(All values are in RM million)

 

Based on the information, answer the following question

 

  1. Find the value of marginal propensity to consume (MPC) & marginal propensity to save (MPS).

 

  1. Derive the saving function

 

 

  1. Calculate the equilibrium income level using the aggregate expenditure – aggregate supply approach

 

  1. Sketch the equilibrium income using the aggregate expenditure-aggregate supply approach without scale.
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