1) Consider economy T described by the parameters below: C=1500+0.6Y I = 1200 G=2500 X =500 M = 400 T = 1000 c. Is economy T experiencing a trade deficit or surplus? Explain your answer. d. Differentiate between the term’s leakages and injections, giving examples to support your response. e. Discuss two (2) factors that may affect consumption in an economy.

1) Consider economy T described by the parameters below: C=1500+0.6Y I = 1200 G=2500 X =500 M = 400 T = 1000 c. Is economy T experiencing a trade deficit or surplus? Explain your answer. d. Differentiate between the term’s leakages and injections, giving examples to support your response. e. Discuss two (2) factors that may affect consumption in an economy.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 2QR

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