Define the variables in the following model and identify the economist who created it: a. (S – I) + (T – G) + (nx) = _________ Given this accounting identity and sovereign currency issuance, is it...

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Define the variables in the following model and identify the economist who created it:


a. (S – I) + (T – G) + (nx) = _________


Given this accounting identity and sovereign currency issuance, is it good for the economy to shrink government deficits? Answer this question with an if/then statement.



Name two countries that fit the above criteria.



6. (30 pts) Using the principle of duality, provide the mathematical models of the two constrained optimization problems that the consumer can solve. Given duality, the answers to these two optimization problems are ________________. In one if/then sentence, use meta-theory to argue whether or not this model indicates that constrained optimization is an appropriate methodology for describing Buddhist economics.

Answered Same DayMay 12, 2021

Answer To: Define the variables in the following model and identify the economist who created it: a. (S – I) +...

Harshit answered on May 13 2021
143 Votes
In the above equation
S= savings
I = Investment expenses
T = Tax income
G = Government spendin
g
NX = Net exports
The above model of equation was framed by John Maynard Keynes.
If the economy associated as above faces a shrink in the government expenditures tax income on the other will increase simultaneously. This situation of budget surplus in the economy leads to...
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