Using the national income accounts identity it must hold that Hence I 49 Date

Using the national income accounts identity it must

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𝑇𝑇 − 𝐺𝐺 ) Using the national income accounts identity, it must hold that: 𝑌𝑌 − 𝐶𝐶 − 𝐺𝐺 = 𝐼𝐼 › Hence: 𝑆𝑆 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 = I 49
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| Date 14-11-2016 faculty of economics and business So, where do we go from here? We have focused on the goods market economy in the short run and found that equilibrium on the goods market implies equilibrium on the loanable funds market. › If production = demand , then Investment = Saving Yet… The current model has no role to play for: Interest rates and money (week 2) International trade (week 3) The labor market (week 4) This sets our agenda until the Midterm Exam. 50
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