How do you find planned investment from the GDP, and determining the equilibrium GDP of an economy?
3 answers
Planned investment = planned savings
Thanks so how do you find the equilibrium GDP of the economy.
I was given what the GDP is, then found consumption, savings, MPC, MPS and the planned investment but not sure how to go find the equilibrium GDP!
I was given what the GDP is, then found consumption, savings, MPC, MPS and the planned investment but not sure how to go find the equilibrium GDP!
I believe you want to find GNP such that MPS*GNP = planned investment