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Q. Assume an economy's national accounts are GDP = 200, C = 140, I = 40, G = 20, NFP = 0 also EX = 30 where GDP is gross domestic product, C is consumption, I is investment, G is government spending, NFP is net factor payments, also EX is exports. Recall Y = GNP = GDP + NFP. Since NFP = -10, then Y = GDP. Using the national income identity find the value of imports (IM). Illustrate what is the current account balance? Illustrate what is the savings rate? Illustrate what would the government, private, also national savings also their rates be if the government introduced taxes T = 20 while the other variables remain unchanged?
What combination of T and M will you choose? Suppose that the price of day trip rises to $80. How will this change your decision making?
The problem is that even though you have assigned values of a,b,c, SN thinks that f is also a function of t, for which you have not assigned a value.
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Now? suppose? that? the ?first ?firm? has? a ?capacity ?of ?2 ?and? the? second? firm? has ?a ?capacity ?of ?4.
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