Economy of Micronia Assignment | Homework For You

Simplified circular flow diagram for the economy of Micronia. ( no investment in Micronia.)

a. what is the value of GDP in Micronia?

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b. What is the value of net exports?

c. what is the value of disposable income?

d. Does the total flow of money of houses hold the sum of taxes paid and consumer spending equal the total flow of money into households?

e. How does the government of Micronia finance its purchases of goods and services?

for no.Government purchases of goods and services = $100GovernmentTaxes = $100ConsumerHouseholdsWages, profit,spending = $650interest,rent = $750Markets for goodsFactorand servicesmarketsGrossWages, profit,domestic interest,product rent = $7500FirmsExports = $20Imports = $20Rest of world purchases services = $150Government borrowing = $60GovernmentTaxes = $100Government transfers = $10.

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