Determine the market value of output

Reference no: EM1373865

1. Assume, in a 2-sector model, that individuals earn the following payments from business sector: wages $520, interest $30 rent $ 10 and profits $80. Consumption spending is $550 and investment is $90.
a. Determine the market value of output and household saving
b. Find the relationship of saving and investment?

Reference no: EM1373865

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