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Xn gdp aggregate expenditure - PowerPoint PPT Presentation

Adding the Government and Open Economy

Adding the Government and Open Economy. Government Purchases. We now add the government (G and T) and foreign sector (X n ) Now, personal income ? disposable income GDP = N I = P I T is fixed. G is fixed= $20 of goods and services. Exports (X) and Imports (M).

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Xn gdp aggregate expenditure - PowerPoint PPT Presentation

Adding the Government and Open Economy