Consider a closed economy. If national saving is 1000, GDP is 6000, and consumption is 4500. Further assume that the government has a deficit of 400. If transfer and net interest payment is 400, the tax revenue is ________ and private saving is __________.

Consider a closed economy. If national saving is 1000, GDP is 6000, and consumption is 4500. Further assume that the government has a deficit of 400. If transfer and net interest payment is 400, the tax revenue is and private saving is __.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Savings,investment And The Financial System

Section: Chapter Questions

Problem 4PA

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Question

Consider a closed economy. If national saving is 1000, GDP is 6000, and
consumption is 4500. Further assume that the government has a deficit of 400. If
transfer and net interest payment is 400, the tax revenue is ________ and private
saving is __________.

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