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

Fiscal policy have occurred, What were the key provisions of the economic s...

What were the key provisions of the economic stimulus bill passed by congress in February 2008? What further changes in fiscal policy have occurred since this time?

Major economic indicators, Discuss the three major economic indicators and ...

Discuss the three major economic indicators and how they are indicative of our current economic climate.

Gross domestic savings, Gross Domestic Savings  Income not devoted to c...

Gross Domestic Savings  Income not devoted to current consumption is saved. In an economy during a particular year some units will consume less than their income while some wil

Determine the experimental design, An ecologist is interested in the possib...

An ecologist is interested in the possible negative effects of marinas and boat mooring areas on the abundances of fish. Having read Hurlbert's paper about pseudoreplication, he de

Estimated profit of typical start-up businesses, Typical start-up businesse...

Typical start-up businesses' estimated profit are forecasted as following: State Bad Good Probability 81% 21%

Explain the pre-emptive monetary policy, Explain the pre-emptive monetary p...

Explain the pre-emptive monetary policy Since 1992 UK monetary policy has been 'pre-emptive'. In pre-emptive monetary policy authorities announce that they are prepared to rai

Calculate the equilibrium level of income, The economy of Macroland has a b...

The economy of Macroland has a balanced budget with fixed government expenditures G = 150 and T = 150. Investment is autonomous: I = 200. The consumption function is the foll

Describe the classical model of macroeconomics, Q. Describe the classical m...

Q. Describe the classical model of macroeconomics? 'The classical model' was a term coined by Keynes in the 1930s to signify essentially all the ideas of economics as they appl

Define min and max regret approach, The Red Lobster sells fresh seafood. Re...

The Red Lobster sells fresh seafood. Red Lobster receives daily shipments of farm-raised fish from a nearby supplier. Each fish cost $2.50 and is sold for $4.00. To maintain its re

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