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Problem 1. Government purchases of goods and services 400, taxes 600, private consumption 3000, export 200, private investment 1500, disposable income 4600, net foreign
Problem 1. Government purchases of goods and services 400, taxes 600, private consumption 3000, export 200, private investment 1500, disposable income 4600, net foreign payments 0, the government budget is balanced, and there is no public debt. (A) Find all the missing values on the circular flow diagram. Draw the circular flow diagram and mark all the values. (B) Is the government borrowing or lending? How much? (C) Is there a trade surplus or trade deficit? What does this mean? (D) Is the economy borrowing or lending? From/to whom? (E) How are national savings used? Problem 1. Government purchases of goods and services 400, taxes 600, private consumption 3000, export 200, private investment 1500, disposable income 4600, net foreign payments 0, the government budget is balanced, and there is no public debt. (A) Find all the missing values on the circular flow diagram. Draw the circular flow diagram and mark all the values. (B) Is the government borrowing or lending? How much? (C) Is there a trade surplus or trade deficit? What does this mean? (D) Is the economy borrowing or lending? From/to whom? (E) How are national savings used?
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