An Application of the Third Equilibrium Condition: Total Injections equals Total Leakage (12 marks) Part 1: Consider an economy characterized with the follwing data in equilibrium: Personal Saving (S): $460.39 million Business Investment Expenditures (I): \$696 million Exports (X) : $915 million Imports (IM): $495.16 million Note: Calculate your answers to THREE decimal places. Do NOT include the dollar sign or commas separting "000s". Part 1: Calculate Public Saving (TG) in equilibrium: (3 marks) Part 2 : Calculate the level of Taxes in equilibrim if government expenditures (G) is $726 million: (2 marks) Part 3: Calculate Total Leakage: (2 marks) Part 4: If Personal Saving is given by: S=315+0.21YD : a) We can write the Personal Consumption equations as: (Y). (3 marks) b) Calculate the break-even disposable income ( YDBE) : (2 marks).

1. An Application of the Third Equilibrium Condition: Total Injections equals Total Leakage (12
marks) Part 1: Consider an economy characterized with the follwing data in equilibrium:
Personal Saving (S): $460.39 million Business Investment Expenditures (I): $696 million
Exports (X) : $915 million Imports (IM): $495.16 million Note: Calculate your answers to
THREE decimal places. Do NOT include the dollar sign or commas separting "000s". Part 1:
Calculate Public Saving (TG) in equilibrium: (3 marks) Part 2 : Calculate the level of Taxes in
equilibrim if government expenditures (G) is $726 million: (2 marks) Part 3: Calculate Total
Leakage: (2 marks) Part 4: If Personal Saving is given by: S=315+0.21YD : a) We can write the
Personal Consumption equations as: (Y). (3 marks) b) Calculate the break-even disposable
income ( YDBE) : (2 marks)