Questions (1 Viewer)

[divyachaddha]

Re: R U puting graphs/charts in your essays?

what does a 4 sector model (keynsian economics) look like????? im really confused
...help.
and everywhere i read says there is a reduced surplus in regards to the 07/08 budget but my teacher says we have an increased surplus because of the resources boom. what's the answer?????

 

[vizman]

Ok firstly the budget is the spending the government does subtracted from their sources of money, tax etc. So what your teacher is saying is that the government sources of money have increased due to record company profits in resources and royalties etc but since the government has increased their spending since the 06/07 budget therby reducing the surplus.

 

[vizman]

im not sure on this but i think the 4 sector model is the one with firms, indivdiduals, financial institutions and government (i think it just doesn't include international sector). and i think the 3-sector and 5-sector are the more common ones used

 

[nickthebiscuit]

Yep, the four-sector model is just the model of a closed economy, ie. no international sector.

 

[sk8ie_boi]

Re: R U puting graphs/charts in your essays?

Yep, the four-sector model is just the model of a closed economy, ie. no international sector.

No, a Keynesian model of the macroeconomy that includes all four macroeconomic sectors, the household sector, the business sector, the government sector, and the foreign sector. Therefore, including the Export and Import component of the equation.

what does a 4 sector model (keynsian economics) look like????? im really confused
...help.
and everywhere i read says there is a reduced surplus in regards to the 07/08 budget but my teacher says we have an increased surplus because of the resources boom. what's the answer?????

For this four sector economy, you can also call it national income (Y) ==> or GDP, the amount an economy produces over a certain time frame.

This national income equals Consumption (C), Investment (I), Government Expenditure (G) and Export (X) minus Import (M) --> C + I + G + (X - M)

First, in regards to the resource boom. It should affect all sectors of the economy. Raises consumer spending (higher income) then resulting in higher tax revenue for the government. Now the government has more money to spend, therefore creating a greater "surplus" in the budget (I think that's what your teacher means). And lastly, it affects the Net Trade --> Export greater than Import --> improving CAD.

 

[ilovecommunism]

回复: Re: R U puting graphs/charts in your essays?

Yep, the four-sector model is just the model of a closed economy, ie. no international sector.

lol... i think this is just how the book devides an economy into different sectors......

household
insudtrial
financial
govt.
foreign