GDP SAVINGS AND EXPORTS TRADE AND INVESTMENT AND CONSULMPTIONAND GOVERNMENT IN SIMPLE LANAGUEG BY AJAY MISHRA

I WILL ASSUME A NATION WHICH ONLY MAKES APPLES - LIKE THAT ALL THEY MAKE   AND WHEN THEY WANT ORANGES OR BUTTER OR SALMON OR CORN - THEY

SELL THEIR APPLES TO A NEIGHBOURING NATION  BY SELLING THEIR - EXCESS - APPLE CROP AND IN THIS EXAMP[LE MY NEIGHBOUR IS A NATION CALLED

SAN ANTONIO WHICH IS NOW SEPARATE FROM NATION CALLED WESTLAKE HILLS AUSTIN  TEXAS - AND THE  MAIN  MAFIOSI IN SAN ANTONIO IS HOOLIGAN CASTRO

AND MY  OTHER NEIGHBOURING NATION IS - STATE OF DELAWARE  WHICH HAS UNCLE JOE - AND HE DOESN'T MAKE ANYTHING JUST LETS INDIANS REGISTER

THEIR TECH COMPANIES AND OPEN SHOPS CALLED DUNKIN DONUTS

AND WESTLAKE HILLS NATION HAS TWO PEOPLE - HILLARY CLINTON - AND AJAY MISHRA - AND  WE ARE THINKING OF ALLOWING BILL CLINTON AND  GEROGE BUSH

TO CAMP THERE WITH US

NOW

SEE THIS

I WILL CALL GDP AS Y

AND

NOW SEE

Y = C + G + I  + NET X  { U KNOW CLINTON GLOBAL INITIATIVE -  LIKE CGI ? OK THE DIFFERENCE HERE IS

C - MEANS CONSUMPTION

G MEANS GIVERMENT SPENDING

I MEANS INVESTMENT

AND NET X = EXPORTS MINUS IMPORTS

LETS SAY ALINA SAYS -OK FOLKS WE HAVE 100 APPLES IN THIS HARVEST

OK NOW,

SO, WE HAVE 100 APPLES IN THE  KITCHEN

NOW, OUT OF 100 -  WE CAN EAT SOME APPLES - AND SAME SOME APPLE PIE - BEING AMERICAN - WE MST EAT APLE PIE ONCE IN  ABLUE MOON..

KET SAY THIS EATINGA DN PEI MAKING - OF APLES - TAKES SO 60 APPLES

SO,  NOW WE STARTED WITH 100 - WE CONSUMED { HENCE THE WORD CONSUMPTION - THE C - IN  THE EQUATION} - 60 - SO, NOW WE LEFT WITH ONLY 40

NOW, LETS SAY GOVENRMET GIVES U 10 MORE APPLES - OK FINE - U ARE NOW HAVING 50 APPLES

NOW, WHAT ARE ALL THE THINGS WE CAN DO WITH  5O APPLES ?

LETS SEE -

WE CAN

[A] GIVE SOME APPLES TO JULIAN CASTRO AND SOME TO JOE BIDEN  - LETS SAY ITS 10 EACH

SO, WE ARE NOW  LEFT WITH 50 MINUS 10 MINUS 10 = 30  APPLES

BTW - THIS GIVING APPLES TO JOE BIDEN AND  JULIAN CASTRO IS BUSINESS NOT  CATHOLIC CHARITY - BOTH IRISH AND HISPANICS ARE CATHOLICS BUT THIS IS BUSINESS - NOT CHARITY. - SO, WE GIVE THEM 10 APPLES EACH BECAUSE -  THATS OUR INVESTMENT - THEY USUALLY RETURN THAT IN THE NET SEASON WITH INTEREST - HENCE THE  NAME INVESTMENT WITH AN IMPLIED UNDERSTANDING CALELD RETURN ON INVESTMENT - EMANING THEY WILL RETRUN THE APPLES WITH INTERETS 0 MENAING WHAT THEY WILL GIVE  US ABCK NEXT SEASON - IS  BOTH THE PRINCIAL - IE THE 20 APPLES -  BUT WITH INTEREST - EMANING  SOMETING ON TOP OF - THE 20 APPLES WE GAVE THEM.. SO, TATS 20 OUR INVESTMENT

 

NOW,  WE CAN ALSO  USING 20 APLLES - BUY AA MACHINE THAT WILL   BE HELPFUL IN INCREAISNG THE YEILD ON OUR APPLE FARM - INSTEAD OF  GICING THE 20 APLES TO - JOE BDIENA ND JULIAN - WE CAN -  BIY URSELEV SA AMCHINE -  BUT ITS ASTILL AN INVESTMNT - JUST THE TOPTIINS ARE CAELD INVESTMENT OPTIONS -  BUT INVESTMENT NEVERTHELESS IT IS

 

NOW, WE ARE LEFT WITH 30 APPLES -

THIS - IS - CALELD OUR NET SAVINGS

REMMEBR Y = C + G + I + NET X 

SO, Y = TOATL NUMEBR OF APLES = 100

C = CONSUMPTIN OF APPLES =  APELES U ATE RAW PLUS MADE APPLIE PIE = 60 

I = INVESTMENT - IN MACHINE - OR - INVETSMENT OUTSORUCED TO JOE AND JULIAN = 20 

G = OK GIVERMNET GAVE US - 10 APPLES - 

SO, NOW  

ITS LIKE THIS  Y = C + G + I + NET X 

NOW, DO SOME MAGIC - 

Y - C - G - I = NET X 

THIS Y  MINUS C MINUS G MINUS I 

= 

ALL THE APPLES ALINA IS NOW SAYING

WE ARE LEFT WITH 

IE - 100 PRODUCED

- MINUS 60 CONSUMED

-  MINUS 10- RECEIVED FROM UNCLE SAM

 

- MINUS 20 INVESTED 

= 100 - 60 - 10 - 20 = 10

 

SO, THESE 10  APPLES ARE  ALL U ARE LEFT WITH  IN YOUR FRIDGE 

IS CALELD - SAVINGS

IN OTHER

WORDS

SAVINGS IS WHAT U LEFT

WITH AFETR U ATE - AND U GAVE 

    MEANS AFTER CONSUMPTION AND INVETSMENT  WHAT U LEFT WITH IS CALELD SAVINGS

 

THIS LEFT WITH IS - CALELD - AFETR -  CONSUMTPOION AND INVESTMENT - WHAT U LEFT WITH IN YOUR FRIGDE ALINA IS - JUST  TESE 10 APPLES 

NOW ALINA IS MODEL AD SHE CAN SHOW CASE

PUR BEAUTIFUL APPELS - CORP - AND EXPORT

THEM TO A FORIEGN NATION -

WHICH MENAS

SAVINGS = NET EXPORTS -

AND YES U CAN SAY HEY ALINA - OUR ONE APPLE IS EQAUL TO THEIR 4 ORANEGS - SO, 10 APLES EQAUL TO 40 ORANGE S

OR - LIKE ONE APPLE EQAULS TO - 2 KILOS OF BUTETR - OR - ONE POOUN DO D GUN POWWDER - AND THAT - ALL IS CALEKD TRADE AND MARKETS IN THE FORIEGN EXCHANGES

I HOPE IT WAS SIMPLE ENOUGH