Determination of National Income Equilibrium IDETERMINATION OF NATIONAL INCOME EQUILIBRIUM MULTIPLE CHOICES 1. An equilibrium equation for an open economy is A. Y=C#1+G+T+X B. S-T+X=1+G-M © Y=C+1+G+(x-M) D. S+l+M= xX-G 2. Given the Consumption function is C = 300 + 0.7Y, the amount of income at breakeven is A. RM 300 B. RM600 RM 1200 - 8 RM 1000 Uw 3. Given the saving function in two-sector economy is $ = -200 + 0.4Yd. Calculate the value of multiplier in this economy. A. 1.67 B04 06 25 4. Leakage ina closed economy include A. investment. import. savings. consumption. 5. Ifthe income is zero, consumption A. is equal to zero. is less than zero. 6 is greater than zero, => awto C J. can be less or greater than zero 6. Given the consumption function in a two-sector economy is C = 150 + 0.5Y. Calculate the value of breakeven income. AO B. 150 250 )300 2Determination of National Income Equilibrium STRUCTURED QUESTION QUESTION 1 Answer to following questions based on the tabi: 3000 4000 _5000 Compute the above table. Ys C4¢ - Catngucnonens consumption. Deterr ine the value of autonomous con: Propensity to Consume (+c: 7S ay | we -o * “Gao eg 9) Calculate the value of break-even income. ye y 2 go teGry e) Calculate: 1) Average Propensity to Consume (APC) ‘when income (Y) is RM2000 million. Ape = 1330 Apres (- 0-635 —~ = O55 ii) Average Propensity to Consur (APC) and Average Propensity to Save (APS) ‘when income (Y) is RM5000 milion. pee 3300 . aps» j—2 -Gé = a = and Average Propensity to Save (APS)uesnon 2 Te folowing tbl contains ato a woascar economy eee cit conaurpiion ‘aarepate Demand (6) RM Mii) (AD) (RM Mion) e000 OL 3D a DY sae) eae Ppa 420, | (oes she 7600 1015150 50 Los yg T300 wo 1300 | Dee 12) Complete the above abe $l Pepensiy to Consume, Marga! Propenstyo Sar, Auoromevs Songs, Deve the cansongtonkcton co atey Gro 2 ay 2 CRH00) o ae — 4) Calcite the vaue of Average Propensity 10 Consume (APC) and Average Propensity to Save (APS) al tre equltrum eve of come Ppes Tor — —_ ae AP ® 1° i —_ Pps etrmantan of Neen rome Epa auestions “The table shows the dato cn natona income and consumption of a county. Assuming 8 county has 9 dosed economy 9) Complete the table OP. mupla 122 “BP apes | OF ae) 19) Caledate the vale of autonomous consumetion and avlonomous sang, | 4) Arg et al EE in, oe ean oe porate gee bok 3 +b0° Omg > tos? 5 UPSee iy Iaith teats ass saci ea 2 mae ai seal & & onan tse A, , see eee * ae — Celcat the value of Average Pronnaty 0 consume (APC) and Average Property © Speen senna at * Socnecoremmtesceme Soe ee Ape > 42> +? Cee) — 4cvestiony” ‘Answer the folowing questions based on the aes #9¢ questions based on the dagram given below. Al figures are in RM ‘Aggregate demand 5 Tia mone sce, WD 325 2) Cea ata A Bor aioe” BP>ysctt. 2 1+ Gor - 230, ee oD Jeo tor Cem) 4 I 2 BB 3004 smo > gee 2) Caeaate new value of Ye when the suonomous consumption iceases to RMSOO mitens "Ye ge te sy eee, ©) Referring to(a))caleulate the vale of Average Propensity lo Consume and Average Propet to Save at naonal came level RNEEOD aon Ape: & , tee to: 1 Clow) y cwo ONS, PPS = 10x : oy 2 ‘uesTion~ jue o Marginal Propensity to Consume (MPC) and Marginal Propensity mpee 1-o-lur aye <2 es oka © ca SI sigs ©) Cataate he vate of consumpon and savings at ncame RMAOOO milion ) Se - ps0 te tor Cues ) Ce 2D Fo Pr CHO) (8) Calelate the Average Propensity to Consume (APC) and Average Properly to Save (APS} income RN2000mikon and RNA000 mon. Yr ewe yeuos See C+ 290 S$ +d pss O pes 39 pps | Ode apes Gone ag eb —~ =... Gon aDetermnatian of Nata! Income Equi QUESTIONS Given the following information about an economy. (All values are in RM milion) Consumstion function (C) = 180+ 0.859 Tax(r) = 100 2) State the va consumption and autonomous so aah o iu aut $2 D) Determine the value of Marginal Propensity 10 Consume (MPC) and Marginal Propet to Save mpe = PS = Denve the fellowing: 1)saving function before tax S 2 [RNBEE! IAP i) saving function ater ax Se -150 +e-76 Cy-T) $= -1% 4:75 cy-IP) Sem Fry Br ‘2 Slade 18) consumption furcten afer tax. C= Ise te érty-4t) Cero teGr ce y-teo) C (Go +eery - br & 4) Calculate the value auiiien, to consume (APC) and Average Propensity to Seve (APS) when nabonl come (7) 8 RMT OOGD milion Pes. -igr toarciom) Ape» ty . St te-tr C tomo) SO Per Gg Be nt com) ie [oreo - = Oy a “enikiger ee =e l-0o66 Determination of National Income Equlriom QUESTION 9 Based on the flloing information, answer the questons below (AN Agures are in RM millon) Consumption funcion C= 500+ 07¥4 levestmene 12200 Government expendiure = 309 Tax Teo 2) Dative consumption function ater tx Ce se tC y-50) es m tet = 2s Fo De crtie- Ys HOS toFy +2 +300 o-?y> ger @ on PETER new equlbrisn name eset irese(G)M 380 so, Dye ky 2 OT. pom fe FUEL? + OD bee ene) Tap tb ory, = 4) Based on(()) Calcite the new equibium incame ¥ govenment expenditure decreases BY RM 100 mition nom J > Bd (6-67 — 733 by - tye Oa VER, (aye J Jat o 2-337 = Ber Kise SyPF Fed te ve of \e Consume (MEC) ane Margret Poveresy 12 ‘Save (MPS). a. = SFr ee oy -20 = fro H-4 Cg -T) = FO ony DD Oucg-sv)= Im 7Determination 1 Nation Income Ensim ‘QUESTION 12 Based on the fotowing information, answer the questions below. (tata are in RM rion) ‘Consumetion functon (C) = seorarsys Investment = 00 Governmert expenditure (G) = 200 Net Export = 40 Tax) = 10 A) Cakcwate national income equltrum for the above economy by using Agaregate, Desi —Aopeo eae, Ye Crd Hatem) ge swte ly - ye) + Zoo toe tr ge ye FoR 1-9 Rese dno Lay — Se 2 ee eee 1 0 ncn a “Troe * OE © Staton ore etre coe wen goa epee renee 32 noto-Py (OF gy eee pee ae oe “ p fy- bee ae jae tote-D ot ae Aig hegaes ey 9 GIES Serotec nT ESTE ar Ele eieaey eases. Son Bee rag = Fide tree d= %x C i) a Senge # parton ©) Based on 9 Stavtery Sep oragaaaeee nar R20. ls are an inane gap orQUESTION 14 ‘Based on the diagram below, answer the following questions. Given taxis equal to RMSO, Exports 2000, imports 1000 and S = -500 + 0.5Yd, (Al values are in RM Mion), Leakage & injection s+ ‘National income (¥) 2) Calculate the equnum lve of natonaincome. Ys, =) + SecRew SHttm salty ta —§eo dor Gy-1) $5e + lee = 2D orcy-se) = is? Osg-3r 2 use O05 = 20s SSR. ee se oes Of. > 10770 scaiige> fellecnneren €)_etana naw aaron come nein ere SO By> pe bt Pye Le «nto = = 4430 - Geo By NT io « ‘QUESTION 15, Determination of Nationa TaconeEquitriam Based on the diagram below, answer the following questions. Given taxis equal lo RM3O. (values ae in RM Mition) Leakage & Injection 700 National income (¥) 2) Gen he vai of ipa is RSCO and impr RMBOO. Cat he ears lyse apna! evome ror sector ecoay, Yi sae ie eae -we 4354 Jot Go - Fe +400 Oty se cr oo) the change in investment required to achieve full employment level of ©) tena fost Bye a4 &T See ol Oe oo =. ie > ae ° { [—m>°