Suppose the economy is four sectors economy. The economy is represented by the following: C= 400 + 0.40Yª G= 40 I 25 T-5 NX =- 25 where; C= Consumption G=Government Expenditure I= Investment T= Tax NX = Net Exports From the information above, calculate and sketch the diagram showing the equilibrium level of income. i. From the information above, calculate the level of consumption and saving that occurs at the equilibrium level of income. ii.

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Suppose the economy is four sectors economy. The economy is represented by the following:
C= 400 + 0.40Yd
G= 40
I= 25
T= 5
NX =- 25
where;
C= Consumption
G=Government Expenditure
I= Investment
T= Tax
NX = Net Exports
i.
From the information above, calculate and sketch the diagram showing the
equilibrium level of income.
From the information above, calculate the level of consumption and saving that
occurs at the equilibrium level of income.
1i.
ENG
- (United States)
G Accessibility: Investigate
US
(hp
Transcribed Image Text:1 List Para. 1 No Spac. E Create and Share Requ A Select - Paragraph Adobe PDF Signat Styles Editing Adobe Acrobat Suppose the economy is four sectors economy. The economy is represented by the following: C= 400 + 0.40Yd G= 40 I= 25 T= 5 NX =- 25 where; C= Consumption G=Government Expenditure I= Investment T= Tax NX = Net Exports i. From the information above, calculate and sketch the diagram showing the equilibrium level of income. From the information above, calculate the level of consumption and saving that occurs at the equilibrium level of income. 1i. ENG - (United States) G Accessibility: Investigate US (hp
iii.
Suppose that imports decreases by 10 and the other components remain, calculate
the new equilibrium level of income.
Will the level of saving and consumption change as the economy adjusts to this
change in imports? Explain.
iv.
E Accessibility: Investigate
hp
Transcribed Image Text:iii. Suppose that imports decreases by 10 and the other components remain, calculate the new equilibrium level of income. Will the level of saving and consumption change as the economy adjusts to this change in imports? Explain. iv. E Accessibility: Investigate hp
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