X is exports, M is imports, T is net taxes, G is government expenditure, C is consumption expenditure, S is saving, and I is investment. The government sector balance is equal to

Question

Quizplus · Accepted Answer

The government sector balance is calculated as net taxes (T) minus government expenditure (G), which is represented by the formula T - G. This reflects the net financial position of the government, indicating whether it has a surplus (if T > G) or a deficit (if T < G).

X Is Exports, M Is Imports, T Is Net Taxes