Determination of C - Im and NT, Macroeconomics

Assignment Help:

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. 

474_Determination of C - Im and NT.png

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.


Related Discussions:- Determination of C - Im and NT

Inverse market supply curve, The inverse market demand curve for a good is ...

The inverse market demand curve for a good is p = 100? 0.25Q. the inverse market supply curve for the good is p = 20 + 0.55Q. Calculate the equilibrium price and quantity, consumer

Country abandons its national currency, When a country abandons its nationa...

When a country abandons its national currency and adopts the currency of the United States, this is known as: A) A floating exchange rate system. B) Dollarization. C) A speculat

National product and domestic product, National Product and Domestic Produc...

National Product and Domestic Product  A modern economy produces literally thousands of different goods and services. Some of these goods and services such as rice, wheat, shir

ORTHODOX KEYNESIAN, WHAT IS THE CENTRAL PROPOSITION OF THE ORTHODOX KEYNESN...

WHAT IS THE CENTRAL PROPOSITION OF THE ORTHODOX KEYNESNIANS?

How central banks increase the monetary base, How central banks increase th...

How central banks increase the monetary base When the Central Bank cuts the target rate, they must simultaneously increase the monetary base by buying government securities. The

Trade unions, discuss the effect that the activities of a trade union might...

discuss the effect that the activities of a trade union might have on an economy?

Intertemporal choices , ) Consider an economy where individuals live for 2 ...

) Consider an economy where individuals live for 2 periods and have prefer- ences represented by ln(c) + ß ln(c') where c and c' represent consumption in the first and second perio

Neoclassical theory, Do neoclassical economists view prices and wages as st...

Do neoclassical economists view prices and wages as stickly or flexible

Multipliers, what is difference b/w dynamic and static multiplier

what is difference b/w dynamic and static multiplier

Define the monopoly of central banks, Define the monopoly of Central banks ...

Define the monopoly of Central banks The central bank has a monopoly on issuing currency, it is in complete control of the monetary base. In section 7.4.2 we will describe exac

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd