| Income ( RM Million) | Consumption ( RM million) | Saving (RM million) |
| 200 | 150 | |
| 400 | 250 | |
| 600 | | 250 |
| 800 | 450 | |
| 1000 | | 450 |
Clone Q for MACROECONOMICS mid-term test
Clone 1.
1. 1. Define autonomous consumption and marginal propensity to save and find their values (4m)
2. 2. Find the consumption function, saving function and autonomous consumption by using the schedule above.(6m)
3. 3. Briefly explain about Break even income. (2m)
Clone 2
| Items | RM (million) |
| Public investment | 100 |
| Private @ corporate investment | 200 |
| Net factor paid from abroad | 300 |
| Changes in inventory | 400 |
| Public expenditure | 500 |
| Private expenditure | 600 |
| Net property received from abroad | 700 |
| Capital consumption | 800 |
| Exports | 900 |
| Imports | 1000 |
| Rental payment | 1100 |
| Services taxes | 1200 |
| Exercises duties | 1300 |
| Companies income taxes | 1400 |
| Petroleum income taxes | 1500 |
| Government subsidies | 1600 |
Based on information above, enumerate the
A) Gross domestic product at market price
B) Gross national product at factor cost
C) National income
Clone 3.
| Items | Country A | Country B |
| Consumption Fuction | C = 200 + 0.40Yd | C=200 + 0.40Yd |
| Government spending | G = 100 | G = 200 |
| Investment | I = 200 | I = 300 |
| taxation | T= 50 | T= 0.1Y |
a. Calculate the tax multiplier for both countries.
b. Calculate the equilibrium income in the country A and country B
c. If the government in country A increase their G expenditure by RM7million, what will be the new equilibrium level of national income for the country A?
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