Investment Spending Equation

Nx x m. To calculate investment spending in macroeconomics we need to know a few formulas.

Investment Spending Definition Formula Video Lesson Transcript Study Com

Y c i g nx.

Investment spending equation. This formula is also known as national savings formula. The lesson covers the following objectives. Y c i g nx.

Formula i y c g. So for a closed economy it reflects s i. In the macroeconomy we have our gross domestic product gdp formula which states that total output gdp y is equal to consumption c investment i government spending g and net exports nx.

Investment spending gross investment depreciation or investment spending all types of spending replacement and new the depreciation of any items being repaired let s apply it to an example. To calculate investment spending in macro economics the gdp formula is used which states that total output gdp y is equal to consumption c investment i government spending g net exports nx. Example of investment spending formula.

To learn more about the calculating investment spending review the lesson investment spending. In addition it will also be shown how s i. Where net exports is exports x minus imports m.

I 20 000 6 000 5 000. The gdp of a country is 20 000 tax is 2 000 government spending is 5 000 and consumption is 6 000.

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