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Why the consumption function is upward sloping

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Reference no: EM132655403

Question 1

(a) There are FOUR main components of GDP. Explain the components.

(b) Assume the GNP for Malaysia is lower than the GDP. Explain why this could happen.

Question 2

Explain why the consumption function is upward sloping and the investment function is horizontal.

Question 3

Elaborate how fiscal policy can solve the problem of unemployment in Malaysia.

Reference no: EM132655403

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