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The following data provide information on Akinira's economy in a particular year: Y = $500; Savings = $120; Taxes = $180; Investment spending $100; Government
The following data provide information on Akinira's economy in a particular year:
Y = $500; Savings = $120; Taxes = $180; Investment spending $100; Government spending = $200; Balance of trade = +$70
a. Is the economy in equilibrium and what has happened to the country's level of inventories in this particular year?
b. Comment on what implication this might have for the following year's GDP.
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