Five Sector Equilibrium Income Determination Model [Demand Side Equation] Part One/Multinational Economic Sector

Abstract

The recursive expansion of International Economics and multiplier effect of economic variables and other factors on the economics of countries leads us to revise some economic topics. One of the most important of these topics is National Income of countries. It is obvious that the 4 sector equilibrium income determination model is not more accurate and responding especially when we are designing Fiscal and Monetary policies or when we are budgeting. That is, I decided to design models containing more than 4 sectors. First, I begin with a 5 sector model, one more sector that is Multinational Economic sector.The Multinational Economic Sector:Definition: First, we must separate multinational economic sector from Import & Export sector. Here, Multinational economics is an external economics sector excluding Import & Export which contains Capital Outflows and Inflows, Country’s share in International Technology and Science, Exchange Rate, Portion for Investments made by foreign companies in national economic and portion for Investments made by national companies abroad, Sociopolitical Risks, Credit rank of country, Forex, International and multinational Sanctions, Country’s share in joint international investments. We content with these items and do arrange a function for Net Income arising from these items. Then, we add the Net Income Multinational Economics up with 4 sector Model in order to get the equilibrium income and interest rate. The final model would be as follows:Y=C+ I+ G +(X-M)+ (ME) Or Y=C +I +G+ (X-M)+ (ME)NI Or Other Calculated formsRelated Topics and Issues: Would appear on Main Full paper version.