ECON 2301 - SIMPLE EQUATIONS [Assignment Results] - Assignment Results Score 4(13 PM 50\/50 Points 100 Single Variable Equations Solving an equation when

# ECON 2301 - SIMPLE EQUATIONS [Assignment Results] -...

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1/19/17, 4(13 PM Assignment Results Page 1 of 5 Score: Score: 50/50 Points 100 % Single Variable Equations Single Variable Equations Solving an equation when only one variable is unknown is straightforward. It is just a matter of isolating the unknown variable on one side of the equals sign. For example, we could use the equation for output in an open economy (Y = C + I + G + NX) to solve for Investment 'I' 'I' when consumption 'C' is \$104.6, output 'Y' is \$182.5, government spending 'G' is \$48.8 and net exports 'NX' is -\$5.2. All numbers are in billions. First, we start with our equation: Y = C + I I + G + NX And plug in the values we are given (we will leave out the “billions” label until the end, since all numbers are expressed in the same terms). Note that adding a negative number is the same as subtracting a positive number, as on the NX term: \$182.5 = \$104.6 + I + \$48.8 - \$5.2 Now group together the constants on the right-hand side: \$182.5 = \$104.6 + \$48.8 - \$5.2 + I \$182.5 = \$148.2 + I And get the unknown variable I on one side by itself by subtracting \$148.2 from both sides: \$182.5 - \$148.2 = I And simplify to solve for I: I = \$34.3 billion 1/19/17, 4(13 PM Assignment Results Page 2 of 5  #### You've reached the end of your free preview.

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