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what are the assumptions,injections and withdrawals into an open four sector economy

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what are the assumptions,injections and withdrawals
into an open four sector economy
Answered Same Day Dec 20, 2021

Solution

David answered on Dec 20 2021
116 Votes
A four sector open economy models consist of household sector, firms, government and rest of
the world sector. Households provide labour and investments to the firm. Firm using the savings
of the household sector generates capital. Labour and capital is then used to produce goods in the
economy. In return of the savings and labour household sector is rewarded with interest payment
and wages. Firms on the other hands sell goods produced to various other sectors: households,
government sector and rest of the world...
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