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Sagot :
Answer:
Y = C + I + G + NX
S = Y - G - C
Y = S + G + C
S = I + NX
S = I + NCO
Outcomes of Balanced Trade
Net Exports = 0
Exports = Imports
Y = C + I + G
Saving = Gross Investment
Net Capital Outflow = 0
Explanation:
Recall the components that make up GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C = consumption, I = gross investment, G = government spending, and NX = net exports, Y is defined as follows:
Y = C + I + G + NX
National saving (S) is the income of the nation that is left after paying for government spending and consumption. Therefore, S is defined as follows:
S = Y - G - C
Re-arranging the previous equation and solving for Y yields
S + G + C = Y
Y = S + G + C
Plugging this into the original equation showing the various components of income results in the following relationship:
S + G + C = C + I + G + NX
S = C + I + G + NX - G - C
S = C - C + I + G - G + NX
S = I + NX
This is equivalent to S = I + NCO, since net exports must equal net capital outflow (NCO, also known as net foreign investment).
Now suppose that a country is experiencing balanced trade. Determine the relationships between the entries in the following table and enter these relationships using the following symbols: > (greater than), < (less than), or = (equal to).
Outcomes of Balanced Trade
Net Exports = 0
Exports = Imports
Y = C + I + G
Saving = Gross Investment
Net Capital Outflow = 0
National incomeY = C + I + G + NX or Y = S + G + C National savingsS = Y - G - C
What is GDP?
Finished goods and services produced by a country during a year.GDP measures the economic health of a nation.
GDP(Y) = private consumption(C) + private investment(I)+ government investment(I) + government spending(G) + (exports – imports)(NX)
1. National Income(Y)=C + I + G + NX------------(1)
2. National Savings(S) is the income left after government spending and consumption
S= Y - G - C
3. Re-arranging the above equations to solve for Y yields
Y = S + G + C---------------------(2)
4. Plugging this into the original equation showing the various components of income results in the following relationship by (1) and (2)
S + G + C = C + I + G + NX
S = C + I + G + NX - G - C
S = C - C + I + G - G + NX
S = I + NX
S = I + NCO (NCO, also known as a net foreign investment).
Therefore, the above explanation appropriately describes the national income.
Learn more about GDP here:
https://brainly.com/question/14393411
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