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Introduction to Economics 2
Introduction to Economics 2 Deneme Sınavı
Introduction to Economics 2 Deneme Sınavı Sorusu #350021
Introduction to Economics 2 Deneme Sınavı Sorusu #350021
If the government budget balance and international trade balance are achieved, what is the macroeconomic equilibrium condition in the economy?
Real interest rate = Nominal interest rate
|
Inflation rate = 0
|
GDP = GNP
|
National income = Disposable income |
Savings = Investments |
Yanıt Açıklaması:
If the government budget balance is achieved, then G = T. On the other hand, if the trade balance is achieved, then IM = EX. If you remember the equilibrium condition stating that leakages must equal injections as:
S + T + IM = I + G + EX
Considering G=T and IM=EX, the above equilibrium condition reduces to
S = I.
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