10.00 points Given the following information about each economy, either calculat

Question

10.00 points Given the following information about each economy, either calculate the missing variable or determ ine if it can be calculated: a. Suppose :-$20.1 billion, $3.5 billion, G = $5.2 billion, and NX-$1 billion. Total income is CClickto select) b. Suppose total income is $1 trillion, G-$0.3 trillion, and C = $0.5 trillion. 1 is ( (Click to select) c. Suppose total expenditure is $675 billion, C = $433 billion, l $105 billion, and G-$75 billion. NX is $ billion. Exports ar v (Click to select) indeterminate

Explanation / Answer

a) Y = C + I + G + NX

Y = 20.1 + 3.5 + 5.2 + ( - 1) = 28.8 - 1 = $ 27.8 billion

b) Y = C + I + G

1 trillion = 0.5 trillion + I + 0.3 trillion

I = 1 - 0.8 = $ 0.2 trillion

c) Y = C + I + G + NX

675 billion = 433 billion + 105 billion + 75 billion + NX

NX = 62 billion

Exports are greater than imports i.e. Exports > Imports

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