MATRIC NO: 13AC1004 NAME: ABDULKAREEM RASHIDAT OVAIOZA LEVEL: 200 LEVEL FACULTY: MANAGEMENT SCIENCE COURSE TITLE: MACRO ECONOMICS ANALYSIS ASSIGNMENT : National income determinant using four sector model. SOLUTION Y=C+I+G+(X-M) C=a+by by=y-t Y=a+b(y-t)+I+g+(x-m) Y=a+b+by-bt+g+(x-m) collect the like term Y-by=a+bt+I+g+(x-m) Y=(1-b)=a-bt+I+g+(x-m) Y=1/1-b a-bt+I+g+(x-m) the four sector model represent the involvement of foreign taxation. under this analysis it represent import and export which can be observe below; Y=C+T+G+X-M where Y= Income G represent government expenditure T is taxation X is export M represent import or S+T+M=I+G+X i.e C+I+G+(X-M)X+I+G Therefore, export less than import. S+T+M=Total revenue I+G+X=Total expences. the equilibrium level can be attain when; S +T+M=I+G+X. the above signifies calculation of national income with reference to the four sector model.
Posted on: Fri, 24 Oct 2014 05:08:36 +0000
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