10-09-24-Goods Market Equilibrium Condition (1)0

10-09-24-Goods Market Equilibrium Condition (1)0 -...

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Closed Economy Goods Market  Clearing Condition Folder Number: 3 Presented:  Sep 29 Relevance:  Central Concepts In  Macromodel Status:  Preliminary Expected:  Revisions Soon
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Goods Market Equilibrium  Condition 1.  Q  Ξ  C + I + G Q Is Output (GDP) 2.  Y  Ξ  C + S + T Y Is Income (GNP) 3.  In A Closed Economy, Q = Y. Combining These Equations, We Find 4.  C + I + G = C + S + T 5.  Eliminating C From Both Sides, It  Follows: 6.  S + T – I – G = 0
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Various Ways Of Writing 6.  S = I + (G – T) 7.  S – I = G – T Caves, Frenkel, Jones Introduces A New  Variable, NS (National Saving) Which Is  Defined As NS  Ξ  S +(T – G) So NS = I Is Their Way Of Writing the  Goods-Market-Clearing Condition.
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This note was uploaded on 07/16/2011 for the course ECON 2154 taught by Professor Boyer during the Winter '10 term at UWO.

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10-09-24-Goods Market Equilibrium Condition (1)0 -...

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