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Macro economics

You are given the following information about Zambia’s economy:

* Each year consumers spend k800 million regardless of the level of their disposable income.  In addition to this k800 million, they always spend 75% of their yearly disposable income.

* Investment is fixed at k250 million.

* Government expenditures are k120 million.

* Net taxes equal k100 million.

* Exports are k170 million.

* Imports are always equal to 15% of the level of disposable income.

(i) How much would Zambia’s equilibrium level of output be?         [5 Marks]

(ii) How much would net exports be when this economy is at equilibrium output?                  [5 Marks]


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Answer #1
1, Equilibrium output= 3.162.50 2, Net export= -289.37
source: My brain
answered by: Lisa
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Answer #2
Equilibrium output= 3.162.50
source: Macroeconomic
answered by: Daniel
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Answer #3
3.162.50 -289.4
source: Economics
answered by: Mr phiri
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