ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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G+T+S = X+M+I
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M+T+I = G+X+S
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S+T+M = G+X+I
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T+X+I = G+T+S
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Detailed explanation-1: -The equilibrium equations (balance of linear momentum) are given in index form as(1.4)ji, j+bi=u¨i, i, j=1, 2, 3where ij are components of (Cauchy) stress, is mass density, and bi are body force components.
Detailed explanation-2: -Equilibrium in the goods market The aggregate supply of goods in the economy, AS, is determined by the interaction of the production function with the labor market. That is, AS = Y = full employment output. Yd = Y =Cd + Id + G0.
Detailed explanation-3: -The Keynesian condition for the determination of equilibrium real GDP is that Y = AE. This equilibrium condition is denoted in Figure by the diagonal, 45° line, labeled Y = AE. To find the level of equilibrium real national income or GDP, you simply find the intersection of the AE curve with the 45° line.
Detailed explanation-4: -ADVERTISEMENTS: In a three-sector economy with government spending and zero taxes, equilibrium national income is determined when aggregate supply equals aggregate demand. That is to say, equilibrium national income is determined at that point when C + I + G line cuts the 45° line (Fig. 10.16).