1) Consider economy T described by the parameters below: C=1500+0.6Y I = 1200 G=2500 X =500 M = 400 T = 1000 c. Is economy T experiencing a trade deficit or surplus? Explain your answer. d. Differentiate between the term’s leakages and injections, giving examples to support your response. e. Discuss two (2) factors that may affect consumption in an economy.
1) Consider economy T described by the parameters below: C=1500+0.6Y I = 1200 G=2500 X =500 M = 400 T = 1000 c. Is economy T experiencing a trade deficit or surplus? Explain your answer. d. Differentiate between the term’s leakages and injections, giving examples to support your response. e. Discuss two (2) factors that may affect consumption in an economy.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: A Macroeconomic Theory Of The Open Economy
Section: Chapter Questions
Problem 2QR
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Question
1) Consider economy T described by the parameters below:
C=1500+0.6Y
I = 1200
G=2500
X =500
M = 400
T = 1000
c. Is economy T experiencing a
Explain your answer.
d. Differentiate between the term’s leakages and injections, giving examples
to support your response.
e. Discuss two (2) factors that may affect consumption in an economy.
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