Balance of trade in open economy

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Reference no: EM1314325

An open economy has the following pattern of income and domestic expenditure:

Variable / Year	Year 1 (£)	Year 2 (£)	Year 3 (£)
National income	500	250	200
Government expenditure	200	250	200
Private consumption	250	300	250
Investment	50	200	200

For each of the three years, evaluate the balance of trade facing the economy.

Reference no: EM1314325

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