Determination of C - Im and NT, Macroeconomics

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Once Y is determined, almost all of the other variables are determined since they are either exogenous or they depend on Y. From Y we can determine C by consumption function, Im from the import function and NT from net tax function. 

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Figure: Determination of C, Im and NT

When these variables are determined, we can determine net exports, government savings, household savings and rest of the world savings. All macro variables but L and U are thus determined.


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