Essay
Suppose output is $35 billion,government purchases are $10 billion,consumption is $15 billion,and net exports are $4 billion.Assume net factor payments equal 0.
(a)Calculate the equilibrium amount of investment.Show your work.
(b)Calculate the equilibrium amount of absorption.Show your work.
(c)Calculate the equilibrium amount of the capital and financial account balance.Show your work.
Correct Answer:
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(a)I = Y - (C + G + NX)= 35 - ...View Answer
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