In a closed economy, the gross domestic product is$33,000, consumption is $11,300 and taxes are $7,400.If the national saving is 6,200, then this governmentwill be running:Select one:a. A budget deficit of $15,500b. A budget deficit of $8,100c. A budget surplus of $15,500d. A budget surplus of $8,100e. None of the answers are correct

The national savings would be the total savings from the public and the private sector. The public…

Answered: In a closed economy, the gross domestic…

In a closed economy, the gross domestic product is $33,000, consumption is $11,300 and taxes are $7,400. If the national saving is 6,200, then this government will be running:

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter16: Budget Deficits In The Short And Long Run

Section: Chapter Questions

Problem 2TY

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Question

In a closed economy, the gross domestic product is
$33,000, consumption is $11,300 and taxes are $7,400.
If the national saving is 6,200, then this government
will be running:
Select one:
a. A budget deficit of $15,500
b. A budget deficit of $8,100
c. A budget surplus of $15,500
d. A budget surplus of $8,100
e. None of the answers are correct

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