How does the following affect the measures of Y, C, and NX (#’s please)? : You...
How does the following affect the measures of Y, C, and NX (#’s please)? : You purchased a good (Virginia) for $20 that the store had acquired a week earlier (i.e., in that same period) from a producer in Mexico for $12 (worth of pesos).
Homework Answers
Answer:
As we know
Y=C+I+G+Nx
Since we have purchased the good at $20 so C will increase by $20
and since the store acquired this good from maxico at $2 so Nx will decrease by $12
Since all investment and government spending is constant so Y will increase by Y=20-12=$8
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