In a mixed open economy, the equilibrium GDP is determined at that point where
A) $S _ { \mathrm { a } } + M + T = \mathrm { I } _ { \mathrm { g } } + X + G$
B) the 45-degree line and the saving schedule intersect.
C) $S _ { a } + X + G = I _ { g } + T$
D) $S _ { a } + I _ { g } + X = G + T$

Question

Quizplus · Accepted Answer

In a mixed open economy, the equilibrium GDP is determined at the point where the sum of private saving ($S_a$), imports (M), and taxes (T) equals the sum of private investment ($I_g$), exports (X), and government spending (G). This is represented by the equation $S _ { \mathrm { a } } + M + T = \mathrm { I } _ { \mathrm { g } } + X + G$, which accounts for all components of aggregate demand and supply in an open economy with government activity.

In a Mixed Open Economy, the Equilibrium GDP Is Determined Sa+M+T=Ig+X+GS _ { \mathrm { a } } + M + T = \mathrm { I } _ { \mathrm { g } } + X + GSa​+M+T=Ig​+X+G

In a Mixed Open Economy, the Equilibrium GDP Is Determined $S _ { \mathrm { a } } + M + T = \mathrm { I } _ { \mathrm { g } } + X + G$