In a closed economy, the values for GDP, consumption spending, investment spending, transfer payments, and taxes are as follows Y = C = |= TR= T= $11 trillion $8 trillion $2 trillion $1 trillion $2 trillion Using the information above, what is the value of private saving and public saving? A. Private saving equals $8 trillion and public saving equals $2 trillion. B. Private saving equals $0 trillion and public saving equals $1 trillion. OC. Private saving equals $2 trillion and public saving equals $8 trillion. O D. Private saving equals $2 trillion and public saving equals $0 trillion.

In a closed economy, the values for GDP, consumption spending, investment spending, transfer payments, and taxes are as follows Y = C = |= TR= T= $11 trillion $8 trillion $2 trillion $1 trillion $2 trillion Using the information above, what is the value of private saving and public saving? A. Private saving equals $8 trillion and public saving equals $2 trillion. B. Private saving equals $0 trillion and public saving equals $1 trillion. OC. Private saving equals $2 trillion and public saving equals $8 trillion. O D. Private saving equals $2 trillion and public saving equals $0 trillion.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 3SQ

See similar textbooks

Similar questions

Suppose GDP is $8 trillion, taxes are $1.5 trillion, private savings is $0.5 trillion, and public savings is $0.2 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving and investment.
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. National savings?
Consider an economy in which GDP is $8.2 trillion, public saving is -$0.2 trillion, taxes are $0.9 trillion, private saving is $3.0 trillion, export is $0.6 trillion, and import is $0.5 trillion. Calculate government purchases. Calculate national saving and investment. Calculate consumption.
Suppose GDP is Rs.10.3 trillion, taxes are Rs.1.8 trillion, private saving is Rs.1.2 trillion, and public saving is Rs.0.2 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving, investment
Suppose GDP is $800 billion, taxes are $150 billion, private saving is $50 billion, and public saving is $20 billion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment.
Show the solution. Suppose GDP equals $30 trillion, consumption equals $20 trillion, the government spends $4 trillion and has a budget deficit of $900 billion. Find: (1) Public saving, (2) Net taxes (3) Private saving (4) National saving
The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,175 million. Enter the amount for government purchases. National Income Account Value Government Purchases (GG) Taxes minus Transfer Payments (TT) 225 Consumption (CC) 625 Investment (II) 300 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S) = = $ million Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private Saving = = $ million Public Saving = = $ million Based on your calculations, the government is running a budget (a. surplus, b. deficit).
The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,540 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases (GG) Taxes minus Transfer Payments (TT) 455 Consumption (CC) 700 Investment (II) 490 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S)National Saving (S) = = (y-t-g, g-t, y-c, y-c-g) = = (C,G,Y,I) $ ______million
Suppose real GDP is $6,182 billion, taxes collected by the government are $719 billion, government spending is $820 billion, and consumption spending is $4,478 billion. What is the value of national saving?
Assume that GDP ( y) is 6.000. Consumption (C) is given by the equation C= 600 + 06(Y-T). Investment (I )is given by the equation I=2,000- 100r, where r is the real rate of interest in percent. Taxes (T) are government spending (G) is also 500 a. What are the equilibrium values of C, I, and r? b) What are the values of private saving, public saving, and national saving? ·
Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, andpublic saving is 0.2 billion. Assuming the economy is closed, calculate the size of: Government Spending and National Savings
Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and public saving is 0.2 billion. Assuming the economy is closed, calculate the size of:(i) Consumption (ii) Investment (iii) Government Spending (iv) National Savings b. Explain the difference between saving and investment as defined by a macroeconomist. c. Which of the following situations in c (i) & c (ii) represent investment? Saving? Explain(i) Your family takes out a mortgage and buys a new house. (ii) You use your paycheque to buy stock in Sagicor Financial Services.