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Complete the following table to answer the questions 5 and 6. 5 marks Income Y Cons. C Exports (X) Govt. Exp.(G) Taxes (T) Inv. (I)
Complete the following table to answer the questions 5 and 6. 5 marks
| Income Y | Cons. C | Exports (X) | Govt. Exp.(G) | Taxes (T) | Inv. (I) | Imp. M | Sav. S | Total Withdrawals | Total Injections |
| 900 |
|
|
| 200 |
| 200 | -100 |
|
|
| 1300 |
|
|
| 300 |
| 300 | 0 |
|
|
| 1700 |
|
|
| 400 |
| 400 | 100 |
|
|
| 2100 |
|
|
| 500 |
| 500 | 200 |
|
|
| 2500 |
|
|
| 600 |
| 600 | 300 |
|
|
| 2900 |
|
|
| 700 |
| 700 | 400 |
|
|
The following components of the above table remain constant at each level of income.
G = $500 X = $300 I = $400
5 What is the break-even level of income? Why?
6 What is the equilibrium level of income? Why?
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