You are given the following information about the Kapas Island economy: Autonomous consumption expenditure is RM200 billion, investment is RM200 billion and government expenditure is RM250 billion. The marginal propensity to consume is 0.7 net taxes are RM250 billion. Exports are RM500 billion and imports are RM450 billion. a) What is the consumption function? b) What is the equalibrium of the Aggregate Demand /Aggregate Expenditure curve? i. Using aggregate demand (AD)= Aggregate supply (AS) approach ii. Using injection = Leakage approach c) If investment decreases to RM150 billion, what is the change in equilibrium expenditure? d) If the Kapas Island government using balance budget which government expenditure and taxes increase by RM50 million, calculate the new income equilibrium. e) From question (d), identify the gap that exist in the economy. How the government of Kapas Islan plays their role in reducing the gap.