1. An economy is characterised by the following equations:C (Consumption)= 60 + 0.9YdI (Investment)10G (Government expenditure)10T (Tax)X СЕхрorts)M (трorts)2010 + 0.05 Y%3D(a) What is the equilibrium income?(b) Calculate trade balance.(c) What is the value of foreign trade multiplier ?

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1. An economy is characterised by the following equations: 60 + 0.9Yd C(Consumption) I (Investment) 10 G (Government expenditure) = 10 T (Tax) = 0 X (Exports) 20 M (Imports) = 10 + 0.05 Y (a) What is the equilibrium income? (b) Calculate trade balance. (c) What is the value of foreign trade multiplier ?

1. An economy is characterised by the following equations: 60 + 0.9Yd C(Consumption) I (Investment) 10 G (Government expenditure) = 10 T (Tax) = 0 X (Exports) 20 M (Imports) = 10 + 0.05 Y (a) What is the equilibrium income? (b) Calculate trade balance. (c) What is the value of foreign trade multiplier ?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 2QR

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