Question
Calculate Disposable income if, Consumption (C) = 200,
Investment (I) = 50, Government purchases (G) = 70, Government transfer payments (TP) = 150, Taxes (T) = 75, Exports (X) = 10, Imports (M) = 5Solution
Y = C + I + G + NX Y = 200+50+70+10-5 = 325 Yd = 325 – T + TP = 325 – 75 + 150 = 400
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