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Chapter 5 notes

Chapter 5 Notes for Macroeconomics

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Economics
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Macro Economics
Chapter 5 notes

Government Purchases Is all spending on the goods and services purchases by government at the federal, state, and local levels. G Excludes on Transfer Payments, such as medical, social security, unemployment, and compensation. Because: No goods or service is being received in exchange for payment Net Exports (NX) NX= Exports-Imports-X-M Exports represent: Goods produced domestically, & consumed by foreign citizens. Imports are the portions of C, U, and g that are spent on g&s produced abroad but consumed domestically. Measuring A Nations Income Y = C + I + G + NX
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