Macro Econ GDP question?
Suppose GDP is $10 trillion, taxes are $2 trillion, private saving is $0.7 trillion, and public saving is $0.3 trillion. Assume we have a closed economy, calculate (1). consumption; (2). government purchases; (3). national saving; (4). investment.
Answer:
(1) consumption=GDP-taxes-savings=...
(2) G=taxes - public saving =1.7tr
(3) savings=.3+.7=1tr
(4) I=S=1tr
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Answer:
(1) consumption=GDP-taxes-savings=...
(2) G=taxes - public saving =1.7tr
(3) savings=.3+.7=1tr
(4) I=S=1tr
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