Q1: There are two equations for macroeconomic equilibrium in an economy. State them Show (mathematically) that Savings equals Investment when expenditure equals income What type of economy would you have when exports equal imports? What happens to the savings-investment relationship if exports are not equal to imports? [This can be greater than or less than]. [Hint: See video lecture on Open Economy Macroeconomics]. Note: Ensure to write out full meanings when you use abbreviations or short forms. This is key to getting full marks
Q1: There are two equations for macroeconomic equilibrium in an economy. State them Show (mathematically) that Savings equals Investment when expenditure equals income What type of economy would you have when exports equal imports? What happens to the savings-investment relationship if exports are not equal to imports? [This can be greater than or less than]. [Hint: See video lecture on Open Economy Macroeconomics]. Note: Ensure to write out full meanings when you use abbreviations or short forms. This is key to getting full marks
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter1: Welcome To Economics!
Section: Chapter Questions
Problem 6SCQ: Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram...
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