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19C Equilibrium in the national income takes place at a point where
Leakages = Injection. Leakages are imports + Taxes + saving, while injections are Exports + Government expenditure + Investment. So, equilibrium will be where
imports + Taxes + saving = Exports + Government expenditure + Investment
87.5 + 87.5 +175 = 100 +50 +200
350 = 350
Equilibrium condition is satisfied when national income is $800m.
Leakages = Injection. Leakages are imports + Taxes + saving, while injections are Exports + Government expenditure + Investment. So, equilibrium will be where
imports + Taxes + saving = Exports + Government expenditure + Investment
87.5 + 87.5 +175 = 100 +50 +200
350 = 350
Equilibrium condition is satisfied when national income is $800m.
answer is c not b dearalso, http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w11_qp_32.pdf
q19. answer is b(700)
thanks!!