ECON1002 T2

1a) What is the value of GDP in Micronia?

1b) What is the value of net exports?

1c) What is the value of disposable income?

1d) Does the total flow of money out of households—the sum of taxes paid and consumer spending—equal the total flow of money into households?

1e) How does the government of Micronia finance its purchases of goods and services?

2a) What is the value of GDP in Macronia?

2b) What is the value of net exports?

2c) What is the value of disposable income?

2d) Does the total flow of money out of HH—the sum of taxes paid, consumer spending, and private savings—equal the total flow of money into HH?

• Yes

• No

2e) How does the government of Macronia finance its total spending (purchases of goods and services, and government transfers)?