Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are given the following information about Zambia's economy: * Each year consumers spend k800 million regardless of the level of their disposable income.In addition

You are given the following information about Zambia's economy:

* Each year consumers spend k800 million regardless of the level of their disposable income.In addition to this k800 million, they always spend 75% of their yearly disposable income.

* Investment is fixed at k250 million.

* Government expenditures are k120 million.

* Net taxes equal k100 million.

* Exports are k170 million.

* Imports are always equal to 15% of the level of disposable income.

(i) How much would Zambia's equilibrium level of output be?

(ii) How much would net exports be when this economy is at equilibrium output?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mostly Harmless Econometrics An Empiricist's Companion

Authors: Joshua Angrist

1st Edition

1400829828, 9781400829828

More Books

Students also viewed these Economics questions

Question

Many different people can conduct performance appraisals.

Answered: 1 week ago