Question
Consider the following model (identity):Y = C + I + G + (X-M)Here Y is GDP, C is consumption, I is investment, G is government
Consider the following model (identity):Y = C + I + G + (X-M)Here Y is GDP, C is consumption, I is investment, G is government spending, X is exports and M is imports. Explain what could happen to GDP if both exports and imports increase.
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Macroeconomics
Authors: Robert J Gordon
12th edition
138014914, 978-0138014919
