In a three-sector economy, the functions of consumption (C), investment (1), taxes (T), and govemment spending (G) are as follows.

Consumption, C = 400+0.60Yd
Investment, | = RM100 million
Taxes, T= RM80 million
Government spending, G = RM250 million
Export, X = 80 M
Import, M = 10+ 0.2Y

a) Calculate state income at the equilibrium level.
b) i) Calculate net exports at the equilibrium level.
ii)State two effects of the net export value to a country.
c) If the national income at full employment is Rm1,800 million,
i) calculate the Gross National Product (GNP) gap
ii) based on the answer in c(i), is the economy experiencing an inflationary gap or a deflationary gap?
iii) give reasons for the answer in c(ii). ​