If planned aggregate expenditures (AE) are $500 billion, consumption (C) is $250billion, investment () is $50 billion, government spending (G) is $100 billion, there isaRecall, that planned aggregate expenditures are: AE=C+l+G+NXO trade deficit of $50 billion.trade surplus of $100 billion.trade surplus of $50 billion.O trade balance.

AE = C + I + G + NX where NX = X-M where X is imports and M is imports

If planned aggregate expenditures (AE) are $500 billion, consumption (C) is $250 billion, investment () is $50 billion, government spending (G) is $100 billion, there is Recall, that planned aggregate expenditures are: AE-C+I+G+NX trade deficit of $50 billion. trade surplus of $100 billion. trade surplus of $50 billion. O trade balance.

If planned aggregate expenditures (AE) are $500 billion, consumption (C) is $250 billion, investment () is $50 billion, government spending (G) is $100 billion, there is Recall, that planned aggregate expenditures are: AE-C+I+G+NX trade deficit of $50 billion. trade surplus of $100 billion. trade surplus of $50 billion. O trade balance.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 3TY

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