1-23-07 - • S T M = I G X • I = S T – G – X – M...

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Macro-Economics Lecture 1/23/07 Ysub-d = disposable income = Y – T Saving results in contraction in the economy Imports/foreign goods are leakages, contractions in the economy X = exports = expansion A trade surplus will expand our economy NX = X – M Leakage = injection
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Unformatted text preview: • S + T + M = I + G + X • I = S + ( T – G ) – ( X – M ) • Private Saving (S) + Public Saving (T – G) = National Saving • 4.4% is our unemployment rate • Bubble Economy – Speculative buying that results in higher stock prices...
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