Suppose output is ($ 35) billion, government purchases are ($ 10) billion, consumption is ($ 15) billion,

Question:

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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9780134167398

9th Edition

Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore

Question Posted: