Chapter Checkpoint

Study Plan Problems and Applications

  1. Figure 1 shows the flows of income and expenditure in an economy. In 2013, U was $2 trillion, V was $1.5 trillion, W was $7 trillion, J was $1.5 trillion, and Z was zero. Calculate total income, net taxes, and GDP.

    Figure 1

    Figure shows the circular flows of income and expenditure in an economy.

Use the following data to work Problems 2 and 3.

The national accounts of Parchment Paradise are kept on (you guessed it) parchment. A fire ...

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