Suppose C + I + G = €3,200m, calculate the National Income (Y) if exports (X) are €500m and imports (M) are €400m - Leaving Cert Economics - Question 5 - 2014

To calculate the National Income (Y), we use the formula:

$Y = C + I + G + X - M$

Where:

• C + I + G = Total Domestic Expenditure = €3,200m
• X = Exports = €500m
• M = Imports = €400m

Substituting in the values:

$Y = €3,200m + €500m - €400m$

First, calculate the exports minus imports:

$X - M = €500m - €400m = €100m$

Now, substitute back into the equation:

$Y = €3,200m + €100m$

Therefore, we conclude:

$Y = €3,300m$