You know that disposable income is $18 trillion in 2020. Consumption is $13.5 trillion, investment is $4 trillion, and the government budget deficit (G-T) is $2 trillion. Calculate the size of the trade balance (in $ trillion). Note: A surplus is a positive number, a deficit is a negative number. Start with the national income identity and add taxes such that you have expressions for disposable income (Y-T) and the government budget deficit.
You know that disposable income is $18 trillion in 2020. Consumption is $13.5 trillion, investment is $4 trillion, and the government budget deficit (G-T) is $2 trillion. Calculate the size of the trade balance (in $ trillion). Note: A surplus is a positive number, a deficit is a negative number. Start with the national income identity and add taxes such that you have expressions for disposable income (Y-T) and the government budget deficit.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![You know that disposable income is $18 trillion in 2020. Consumption is $13.5 trillion,
investment is $4 trillion, and the government budget deficit (G-T) is $2 trillion. Calculate the
size of the trade balance (in $ trillion).
Note: A surplus is a positive number, a deficit is a negative number. Start with the national
income identity and add taxes such that you have expressions for disposable income (Y-T) and
the government budget deficit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c10af17-3c34-4f43-bc24-f68ca102ca70%2Faaff99b8-086b-4bb8-a72a-a0787beb2c4a%2Fp589g4_processed.png&w=3840&q=75)
Transcribed Image Text:You know that disposable income is $18 trillion in 2020. Consumption is $13.5 trillion,
investment is $4 trillion, and the government budget deficit (G-T) is $2 trillion. Calculate the
size of the trade balance (in $ trillion).
Note: A surplus is a positive number, a deficit is a negative number. Start with the national
income identity and add taxes such that you have expressions for disposable income (Y-T) and
the government budget deficit.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education