The Net Export Function for the Economy of Bertan Is

question 13

Essay

The net export function for the economy of Bertan is X_N = 500 - 0.1Y.
a)Suppose income is $3,000.What is the value of the trade surplus or deficit?
b)What range of income will give Bertan a trade surplus?
c)What range of income will give Bertan a trade deficit?
d)At what level of income will there be a zero balance of trade?

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Definitions:

Inventory Ownership

Refers to having legal title to goods and merchandise stored within a firm's warehouse or storage facility.

Weighted Average

It's a calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in determining the cost of inventory.

Erratic Changes

Unpredictable fluctuations that do not follow a set pattern or trend, often affecting financial markets or economic conditions.

Inventory Cost Method

An accounting technique used to determine the value of a business's inventory and cost of goods sold, such as FIFO (First In, First Out) or LIFO (Last In, First Out) methods.