Chapter 9 Formulas and Definitions All symbols are as in the…

Chapter 9 Formulas and Definitions All symbols are as in the textbook and lectures. CA + FA = 0, ignoring KA, and except for the statistical discrepancy GDP = C + I + G + X – M GNP = GDP + net primary income + net secondary income GNP = C + I + G + CA S + (T – G) = I + CA ********************************* Let’s define National Savings as equal to GNP – C – G. Then which is true? (Hint: look at the formulas for this chapter listed above: which formula seems more applicable?)