Government revenue, Macroeconomics

Assignment Help:

Government revenue, government spending and net exports 

G, NT and NX are exogenous variables in the classical model

In the classical model (and in most macroeconomic models) government spending and net taxes are presumed to be exogenous variables determined by the government.  

Net Exports NX is also an exogenous variable that means both imports Im and exports X are exogenous variables. Exports are determined by rest of the world and this variable is exogenous in most macro models. It's possible to presume that imports depend on real interest rate by the same arguments we used for consumption. It would be possible to modify classical model such that imports depended on real interest rate though results would be largely the same. Consequently we presume that imports are exogenous as well.


Related Discussions:- Government revenue

Conclude a hypothesis test, Will improving customer service result in highe...

Will improving customer service result in higher stock prices for the companies providing the better service? When a companys satisfaction score has improved over the prior years r

What causes a supply curve to shift, What causes a supply curve to shift? ...

What causes a supply curve to shift? a. Changes into Input Prices An input is a good which is used to generate another good. b. Changes into Technology c. Chang

Explain about the elasticity and total revenue, Explain about the elasticit...

Explain about the elasticity and total revenue. Elasticity and Total Revenue: a. When demand for a good is elastic, a raise in price decreases total revenue. Then Sales effe

Determine what would be lowest bid of sfi , Snake Farm Inc. (SFI) has been ...

Snake Farm Inc. (SFI) has been offered to submit a competitive bid for building 31 and 22, 18, and 11offshore pits per year for Athletic Inc. over the next four years.  If the bid

Combination, take one set ( lk& output) to prove

take one set ( lk& output) to prove

What causes a demand curve to shift, What causes a demand curve to shift? ...

What causes a demand curve to shift? a. Changes into the Prices of Related Goods Substitutes Complements b. Changes into Income Normal Goods Inferio

Expected cost of building the boat, Half the members of a fishing tribe cat...

Half the members of a fishing tribe catch four fish per day and half catch 10 fish per day. A group of 10 members could build a boat for another tribe in one day and receive a paym

Rent, discuss modern theory of determination of rent?

discuss modern theory of determination of rent?

Labor Economics, Assume Workers Comp awards $X to workers not working becau...

Assume Workers Comp awards $X to workers not working because of injury. $X is set to equal the workers previous wages. Once workers return to work, the award payments stop. Suppose

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