Answer:
- See all the answers with explanation below.
Explanation:
1. Nation A.
a) Statistics
Goverment expending (G), exports (X), and investments (I)
- G = $1,855
- X = $565
- I = $375
Taxes (T), imports (M), Savings (S)
- T = $2,10
- M = $450
- S = $335
b) Equations:
- National income change = (G + X + I) - (T + M + S)
- National income change = $2795 - $2,795 = 0
c) Analysis
The national income of Nation A has has stayed the same because the goverment spendings of $1,855, exports of $565, and investments of $375, totalized $ 2,795, such as the taxes of $2,010, the imports of $450, and the savings of $335 totalized the same amount.
In conclusion, the economy of Nation A remainded unchanged.
2. Nation B.
a) Statistics
Goverment expending (G), exports (X), and investments (I)
- G = $2,055
- X = $1,020
- I = $1,025
Taxes (T), imports (M), Savings (S)
- T = $1,950
- M = $370
- S = $100
b) Equations:
- National income change = (G + X + I) - (T + M + S)
- National income change = $4,100 - $2,420 = $1680
c) Analysis
The national income of Nation B has has increased because the goverment spendings of $2,055, exports of $1,020, and investments of $1,025, totalized $4,100, which is greater than the sum of the taxes of $1,950, the imports of $370, and the savings of $100, that totalize $2,420.
In conclusion, the economy of Nation B grew.
3. Nation C.
a) Statistics
Goverment expending (G), exports (X), and investments (I)
- G = $2,880
- X = $995
- I = $1,225
Taxes (T), imports (M), Savings (S)
- T = $3,705
- M = $1,350
- S = $825
b) Equations:
- National income change = (G + X + I) - (T + M + S)
- National income change = $5,100- $5,880 = $ - 780 (negative)
c) Analysis
The national income of Nation C has has decreased because the goverment spendings of $2,880, exports of $995, and investments of $1,225, totalized $5,100, which is less than the sum of the taxes of $3,705, the imports of $1,350 and the savings of $825, that totalizes $5800.
In conclusion, the economy of Nation C slowed down.