In the complete aggregate expenditures model, equilibrium GDP occurs where C a 1 I g 1 X
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In the complete aggregate expenditures model, equilibrium GDP occurs where C a 1 I g 1 X n 1 G 5 GDP. At the equilibrium GDP, leakages of after-tax saving ( S a ), imports ( M ), and taxes ( T ) equal injections of investment ( I g ), exports ( X ), and government purchases ( G ): S a 1 M 1 T 5 I g 1 X n 1 G .
Also, there are no unplanned changes in inventories.
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Related Book For
Economics Principles Problems And Policies
ISBN: 9780073511443
19th Edition
Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn
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