Problem 2. National income is 2000, 10% of which is net factor payments from abroad. Taxes...
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Problem 2. National income is 2000, 10% of which is net factor payments from abroad. Taxes are 300, transfers 100, and interest on public debt 100. The government maintains a budget deficit of 5% of GDP. Investment is 500. The trade deficit is 90, and import is 120. (A) (B) (C) (E) Find all the missing values on the circular flow diagram. Draw the circular flow diagram and mark all the values. Is the government borrowing or lending? Is the economy borrowing or lending? From/to whom? How are private savings used? Find disposable income. Problem 2. National income is 2000, 10% of which is net factor payments from abroad. Taxes are 300, transfers 100, and interest on public debt 100. The government maintains a budget deficit of 5% of GDP. Investment is 500. The trade deficit is 90, and import is 120. (A) (B) (C) (E) Find all the missing values on the circular flow diagram. Draw the circular flow diagram and mark all the values. Is the government borrowing or lending? Is the economy borrowing or lending? From/to whom? How are private savings used? Find disposable income.
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A Given National income Y 2000 Net factor payments from abroad 10 of Y 01 2000 200 Taxes 300 Transfe... View the full answer
Related Book For
Macroeconomics
ISBN: 978-0321675606
6th Canadian Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
Posted Date:
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