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problem 1: Suppose the government cuts its buys by $120 billion. As a result, the budget deficit is diminishes by $40 billion, private domestic saving reduces by $10 billion, disposable personal income reduces by $80 billion and the trade deficit is diminishes by $15 billion. By how much has national income (Y) changed?

problem 2: Use the subsequent information to answer the problems which are given below:

Data are in Trillions of Dollars

• Personal consumption expenditures $3.0

• Net private domestic investment $1.4

• Depreciation $0.2

• Government purchases of goods and services $2.0

• Exports $0.5

• Imports $0.3

• Foreign factor income $0.1

i) Evaluate the GDP

ii) Evaluate the net exports

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M910522

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