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If National Income (Y) = C + I + G = €2,400m, calculate the National Income if exports (X) are €300m and imports (M) are €200m (show all your workings). - Leaving Cert Economics - Question 9 - 2011

Question 9

If National Income (Y) = C + I + G = €2,400m, calculate the National Income if exports (X) are €300m and imports (M) are €200m (show all your workings).

Worked Solution & Example Answer:If National Income (Y) = C + I + G = €2,400m, calculate the National Income if exports (X) are €300m and imports (M) are €200m (show all your workings). - Leaving Cert Economics - Question 9 - 2011

Step 1

Calculate National Income Using the Formula

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Answer

To find the National Income (Y), we will use the formula:

$Y = C + I + G + X - M$

Given:

C + I + G = €2,400m
X = €300m (exports)
M = €200m (imports)

Substituting the known values into the formula, we get:

$Y = €2,400m + €300m - €200m$

Step 2

Final Calculation

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Answer

Calculating the above expression:

$Y = €2,400m + €300m - €200m$
$Y = €2,400m + €100m$
$Y = €2,500m$

Thus, the National Income is €2,500m.

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