Economics Y=c+i+g

Y C I G X M is the standard equational expenditure representation of GDP. Y C I G.

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Where Y is national income or output and C I G represents the level of aggregate demand including Government expenditure G.

Economics y=c+i+g. The formula for GDP is. In the macroeconomy we have our Gross Domestic Product GDP formula which states that total outputGDP Y is equal to consumption C investment I government spending G and net exports NX. Y C I G displaystyle YCIG.

Y C I G X M Y R110 million R180 million R110 million R25 million R40 million Y R385 million This formula is exactly as homework. 1 Y C I G C I 17 102 trillion 2 C 154 06Y-T 154 06102 - 16 67 trillion 3 T -044 02Y -044 02102 16 trillion. Since in equilibrium Y C G because of the income-expenditure identity aka the market clearing condition for consumption goods then C Y G C zFKh l G So consumption equals output minus the government expenditure.

Y C I G C 120 5Y T I 100 10r G 50 T 40 M P d Y 20r Ms 600 P 2 a. Both are illustrated in Figure 2A and B. Y c 0 c 1Y T I G NB.

Budget deficit 300 billions. Aggregate expenditure is defined as the current value of all the finished goods and services in the economy. Solving the GDP equation.

The variable Y represents real output or real income. Y c i g ADVERTISEMENTS. Goods market IS curve.

Y C I G X-M National income with government interference From the national income some will be used for consumption saving and others used for paying taxes. If Y is national income GDP then the three uses of C consumption I investment and G government purchases can be expressed as. 1 Assume the following model of the economy.

Y-T-C T- G I. Y is both output and income remember Topic 1 Introduction to Macroeconomics TOPIC 2. In economics aggregate expenditure AE is a measure of national income.

Y C I G X M Y T C is private saving and T G is public saving. Z Y Y 120 05 Y T I G Y 11 05 120 I G 05T Y 2 120 40 20 0540 Y 320 2. Macroeconomics and the GDP equation YCIGNX.

The sum is denoted STtotal saving. Assume a simple three-sector economy where Y CI G Y C I G C C0 bY C C 0 b Y I I 0aY I I 0 a Y G G0 G G 0 Here C0I 0G0a C 0 I 0 G 0 a and b b are given with certain economic restrictions. The most basic equation for representing GDP is the following.

Y CIGXIm Here Y denotes gross domestic product C is private consumption I is investment G is government consumption government spending X is exports and Imis imports. STI X M Current account surplus the country is saving more than it invests providing. G di y - t C consumption spending DI disposable income I investment expenditure G government spending T tax revenue X exports M imports Y real GDP These equations tell us that consumer spending would be at 480 if consumers had no income at all and that consumers spend 80 of every extra additional dollar they.

Reorganizing the equation we get. Equals government spending and Ex - Im. Equals investment by businesses G.

Y C S S Y-C IGS. GDP C I G Ex - Im where C. C Consumption I Gross Private Investment G Government Purchases X Exports M Imports Y NominalGDP Y C I G X M 7.

Jeff economics macroeconomics real gdp When looking at the basic macroeconomy we need to know what components make up GDP Gross Domestic Product. This income level is more than the income level OY without government expenditure. Find the equilibrium income Y Y and consumption C C.

In Panel A CIG is the new aggregate demand curve which intersects the aggregate supply curve 45 line at point E 1 where OY 1 is the equilibrium level of income. 2 25 2 Four market in the economy-GoodsProduct Market-Factor Market-Foreign Exchange Market-Financial Market 3 National account aggregates-The production method 1. In this simple economic model with a closed economy there are three uses for GDP the goods and services it produces in a year.

Closed economy of a city is is described by the following equations GDP Y 10 trillions G 2 trillions Consumption C 65 trillions. With adding of variable taxes on national income then the formula is. Equals spending by consumers I.

Y Equilibrium in the goods market production demand. Gross Domestic Product is the sum of all spending on goods and services in a nations economy in a year. S Y T C T G Y C G Note that YT is disposable income If the economy is to remain in a steady state the flows into the financial market ie.

This means that we. The aggregate demand of this economy is given by Z C I G Z 120 05 Y T I G The equilibrium condition is that aggregate demand is equal to output. Introduction to Macroeconomics University of Vienna and Institute for Advanced Studies Vienna.

Thus for the economy to remain in a steady state. Y Aggregate demand C Consumer demand I Investment demand G Government demand beginalignedY C I G textbfwhere Y textAggregate demand C. Equals net exports that is the value of exports minus imports.

Private saving and public saving must balance the flows out of the financial market. Where Y is GDP. Y C I G where.

Y C I G NX. Identify each of the variables and brie y explain their meaning. The aggregate expenditure is thus the sum total of all the expenditures undertaken in the economy by the factors during a given time period.

C 0 c 1Y T I G Supply of goods. C consumption is normally the largest GDP component in the economy consisting of private expenditures household final consumption expenditure in the economy.

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