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How do you know something is a surplus or deficit? Class Example 2 1. Suppose that the following information describes Melmeck's economy: . C=325 +

How do you know something is a surplus or deficit?

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Class Example 2 1. Suppose that the following information describes Melmeck's economy: . C=325 + 0.5Ya . I = 500 . G =425 . X = 550 . M = 425 + 0.1Y . T= 110 + 0.3Y 1. Calculate Melmeck's level of equilibrium income according to the total expenditure approach. 2. Does Melmeck have a surplus or a deficit on its trade balance? Show all your calculations

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