Chapter1 alance of payments.docVIP

Chapter1 Balance of payments The Definition of NI Reflects the total productive input or the total value of the final production of a country in course of time. Course of time?Flow Stock Productive input? Final production? Or? Two ways NI Equality in Closing Economy 1.Expenditure： Ｙ≡ Ｃ＋Ｉ＋Ｇ =A 2.Income ：Ｙ≡ Ｃ＋Ｓp+ Ｔ because expenditure equals to income, so: 3. Ｃ＋Ｉ＋Ｇ ≡ Y ≡ Ｃ＋Ｓp+Ｔ Why C appears in both directions of the equality? In what condition, the equality will be proved? NI Equality in Opening Economy Ｙ＝Ｃ＋Ｉ＋Ｇ＋Ｘ－Ｍ Opening e