A more complex circularflow diagram for the economy of, Engineering Mathematics

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A more complex circularflow diagram for the economy of

Question: A more complex circularflow diagram for the economy of Macronia is shown at right. (Note that Macronia has investment and financial markets.)

a. What is the value of GDP in Macronia?

b. What is the value of net exports?

c. What is the value of disposable income?

d. Does the total flow of money out of households- the sum of taxes paid, consumer spending, and private savings-equal the total flow of money into households?

e. How does the government finance its spending?

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