In four sector model of macroeconomics, what does (x-m) represent?

Marketing Jan 13, 2021

Expert Solution

In four sector model of macroeconomics, X-M represents net exports, where X = Exports of goods and services by a country and M= imports of goods and services in a country.

Exports: In international trade, exports refer to goods or services produced in the domestic country that is bought by someone in foreign country.

Imports: In international trade, imports refer to goods and services bought by residents of a country from a foreign country.

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