EQUILIBRIUM EQUATION SYSTEM IN THE NATIONAL ECONOMY

Abstract

In the article, we present the system of linear equations of equilibrium of the national economy, which is related to the analysis of national income. Together with the simplest model of the national economy, we will consider a relatively complicated model in which state expenditures (G) and tax fees (T) are considered. As can be seen from the figure, in the cell "Firms" comes three money flows C, I and G, and there is a money flow Y in the form of national income, which in this case is divided into three flows S, T and C. Thus, the amount that households have left to purchase goods and saving is not Y, but Y-T, which is called net income.