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2. A more complex circular-flow diagram for the economy of Macronia is shown at right. a. What is the value of GDP in Macronia? b. What is the value of net exports? c. What is the value of dispos- able income? d. Does the total flow of money out of households the sum of taxes paid, consumer spend- ing, and private savings-equal the total flow of money into households? Government purchases = $150 Consumer spending = $510 Markets for goods and services Taxes = $100 Income from sales Investment spending = $110 Export spending = $50 Government Import spending = $20 Transfers $10 Households Firms Rest of world Government borrowing = $60 Private savings = $200 Wages, profit, interest, rent = $800 Factor markets Wages, profit, interest, rent = $800 Borrowing and stock issues $110 Foreign borrowing and stock sales $130 Financial markets Foreign lending and stock purchases = $100

2. A more complex circular-flow diagram for the economy of Macronia is shown at right. a. What is the value of GDP in Macronia? b. What is the value of net exports? c. What is the value of dispos- able income? d. Does the total flow of money out of households the sum of taxes paid, consumer spend- ing, and private savings-equal the total flow of money into households? Government purchases = $150 Consumer spending = $510 Markets for goods and services Taxes = $100 Income from sales Investment spending = $110 Export spending = $50 Government Import spending = $20 Transfers $10 Households Firms Rest of world Government borrowing = $60 Private savings = $200 Wages, profit, interest, rent = $800 Factor markets Wages, profit, interest, rent = $800 Borrowing and stock issues $110 Foreign borrowing and stock sales $130 Financial markets Foreign lending and stock purchases = $100

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Parts a,b, and c

2. A more complex circular-flow diagram for the economy of Macronia is shown at right. a. What is the value of GDP in Macronia? b. What is the value of net exports? c. What is the value of dispos- able income? d. Does the total flow of money out of households-the sum of taxes paid, consumer spend- ing, and private savings-equal the total flow of money into households? Government purchases = $150 Consumer spending = $510 Markets for goods and services Taxes = $100 Income from sales Investment spending = $110 Export spending = $50 Government Import spending = $20 Transfers $10 Households Firms Rest of world Government borrowing = $60 Private savings = $200 Wages, profit, interest, rent = $800 Factor markets Wages, profit, interest, rent = $800 Borrowing and stock issues = $110 Foreign borrowing and stock sales $130 Financial markets Foreign lending and stock purchases = $100
Transcribed Image Text:2. A more complex circular-flow diagram for the economy of Macronia is shown at right. a. What is the value of GDP in Macronia? b. What is the value of net exports? c. What is the value of dispos- able income? d. Does the total flow of money out of households-the sum of taxes paid, consumer spend- ing, and private savings-equal the total flow of money into households? Government purchases = $150 Consumer spending = $510 Markets for goods and services Taxes = $100 Income from sales Investment spending = $110 Export spending = $50 Government Import spending = $20 Transfers $10 Households Firms Rest of world Government borrowing = $60 Private savings = $200 Wages, profit, interest, rent = $800 Factor markets Wages, profit, interest, rent = $800 Borrowing and stock issues = $110 Foreign borrowing and stock sales $130 Financial markets Foreign lending and stock purchases = $100
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