For the economy to be in equilibrium, the following condition must be satisfied: G + I = S + T.

Name: For the economy to be in equilibrium, the following condition must be satisfied: G + I = S + T.
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Question

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This is the basic equation of macroeconomic equilibrium, where G represents government spending, I represents investment, S represents savings, and T represents taxes. When government spending and investment equal savings and taxes, the economy is in equilibrium.

For the Economy to Be in Equilibrium, the Following Condition