An economy has investment $150m, government spending $200m, exports $180m, saving $120m, taxation $180m and imports $230m. What is its position?

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Question

An economy has investment $150m, government spending $200m, exports $180m, saving $120m, taxation $180m and imports $230m. What is its position?

Accepted Answer

In equilibrium, since injections of $530m equal withdrawals of $530m — Award 1 mark. Working: $150 + $200 + $180 against $120 + $180 + $230.

Answer

In equilibrium, since injections of $530m equal withdrawals of $530m

Answer

Contracting, since withdrawals exceed injections

Answer

Expanding, since injections of $530m exceed withdrawals of $500m

Answer

Impossible to determine without the level of consumption

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