Description
- How do economists integrate the international sector (exports and imports) into the aggregate expenditures model?
- How do economists integrate the public sector (government expenditures and taxes) into the aggregate expenditures model?
400-500 word response
Please use Chapter 29 and I will insert graphs if you can elaborate on the relevant ones.
Explanation & Answer
Attached.
Running Head: AGGREGATE EXPENDITURES MODEL
Aggregate Expenditures Model
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AGGREGATE EXPENDITURES MODEL
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Aggregate Expenditures Model
Integrating international sector i.e. exports and imports in aggregate expenditures model
Economists appreciate an understanding of consumption and investment that leads to the
formation of the aggregate expenditures model. Economists net the exports and imports so that it
is incorporated into the aggregate expenditure model (Brady, 2017). Usually, it is obtained by
deducting imports value from the exports value. The net figure may be negative implying th...
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