Suppose GDP is $10 trillion, taxes are $2.5 trillion, private saving is $1.5 trillion, and public saving is $0.5 trillion. Assuming this economy is closed; calculate consumption, government purchases, national saving, and investment.[

Q: Show the solution. Suppose GDP equals $30 trillion, consumption equals $20 trillion, the government…

A: Given  GDP = $30 trillion.  Consumption = $20 trillion.  Government spending = $4 trillion.  Budget…

Q: The following graph shows the market for loanable funds in Aperto, a large open economy. The…

A: When the government influence the economic outcome by changing the tax or its spending or both then…

Q: assume an economy in which: (i) there are no exports and no imports, (ii) investors always want to…

A: Answer: Given, Net exportNX=Export-Import=0-0=0InvestmentI=$200 billionGovernment expenditureG=$500…

Q: An increase in the government's budget deficit means Options: public saving is greater than $0 and…

A: A government is said to be in deficit when it's revenue is less than its spending. Such situation is…

Q: Suppose the government decides to buy government bonds.  Will interest rates increase, decrease, or…

A: We have found suppose the government decides to buy government bond.

Q: Consider an economy described by the following equations: Y = C + I + G Y = 5,000 G = 1,000 T =…

A: Given  Y = 5,000G = 1,000T = 1,000C = 250 + 0.75(Y −T )I = 1,000 − 50r C = 250 + 0.75(Y - 1000) C =…

Q: Assume an economy in which: (i) there are no exports and no imports, (ii) investors always want to…

A: The planned investment is the amount that the firms are intended to invest for purchasing new…

Q: b. Suppose GDP equals $10 trillion, consumption equals $6 trillion, the government spends $2…

A: Macroeconomics studies the economy as a whole. It explains the aggregate economic concepts such as…

Q: China has seen a steep rise in total debt from 150% of GDP in 2008 to 250% today (the Economist,…

A: (a1) Debt refers to the total amount of money that we owe to somebody. When the debt increases, then…

Q: The table below shows aggregate values for a hypothetical economy. Suppose this economy has real GDP…

A: Private saving=consumption+-investment =10,000-300=97000

Q: Suppose the economy is in a recession, which of the following fiscal policy can the government use…

A: A recession is a macroeconomic word for a large drop in overall economic activity in a certain area.…

Q: Question 15 Scenario 21-1 Consider the following data for a closed economy, assuming no interest…

A: Given; Y= $12 trillion C= $8 trillion I= $2 trillion G= $2 trillion Transfers= $2 trillion Taxes= $3…

Q: Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and  public…

A: Given that, GDP = $8billion  Taxes = $1.5 billion  Private saving = $0.5 billion  Public saving =…

Q: Soon after his election in 1992, President Clinton proposed reducing government spending and…

A: 1) President Clinton proposed reducing government spending and increasing taxes which will reduce…

Q: Consider an economy in which GDP is $30 billion. Tax revenue is $7 billion, consumption is $15…

A: Given information: GDP (Y) is $30 billion Tax revenue (T) is $7 billion Consumption (C) is $15…

Q: Consider an economy in which GDP is $8.2 trillion, public saving is -$0.2 trillion, taxes are $0.9…

A: Economy means managing the available resources carefully.

Q: In a closed economy, if Y is 12,000, T is 1,000, G is 3,000, and C is 5,000, then the government has…

A: A closed economy is one that has no trading activity with outside economies. The closed economy is…

Q: MPC and MPS) If consumption increases by $12 billion when real disposable income increases by $15…

A: MPC is nothing but then ratio of change in consumption to the change in real disposable income.

Q: Recently, a legislator proposes to raise the expenditure on infrastructure. How would this affect…

A: Usually when government decides to increase its spending, it has a direct effect on the loanable…

Q: Q. Suppose GDP equals $10 trillion, consumption equals $6.5 trillion the government spends $2…

A: Given: Y= 10.0, C= 6.5, G= 2.0, G– T= 0.3 Public saving = T– G = – 0.3

Q: Level of investment goes up by 200. What happens with the level of GDP if you know that MPS = 0,9.…

A: Given; Increase in level of investment; ∆I=200 Marginal propensity to save; MPS= 0.9 Marginal…

Q: Complete the following table by calculating private saving, public saving, national saving,…

A: Here we can find the following terms which are as follow-

Q: GDP $7.3 trillion Consumer Spending $5.2 trillion Taxes Minus Transfers $1.1 trillion Government…

A: Private savings can be defined as what the economy saves in an accounting year. Private savings can…

Q: Consider an economy in which GDP is $30 billion. Tax revenue is $7 billion, consumption is $15…

A: 1. Government budget = Tax revenue – spending 2 Billion = 7 – spending Spending = 5 Billion $

Q: Question 3. Suppose that Y=C + 1+ G in a closed economy and GDP (Y) is 6,000. Consumption (C) is…

A: * SOLUTION :-  * 3)

Q: Suppose GDP equals $300 trillion, consumption equals $24 trillion, the government spends $3 trilNon…

A: A country's national savings is the total of its domestic savings by household and companies…

Q: In a closed economy, GDP is $1000, government purchases are $200, and consumption is $700. If the…

A: In Keynesian macroeconomics when the price level in the economy is assumed to be fixed then planned…

Q: Suppose real GDP is $5,042 billion, taxes collected by the government are $534 billion, government…

A: The policy of the government regarding taxation and government expenditure is known as the fiscal…

Q: Consider an economy described by the following equations: Y = C + I + G AND, Y = 5,000; G = 1,000; T…

A: Given Information: Y = C + I + G Where, * Y = 5,000; * G = 1,000; * T = 1,000; * C = 250 + 0.75(Y…

Q: Based on the Ricardian Equivalence, explain the impact of the debt-financed tax cut on public…

A: Ricardian equivalence suggests that households are forward-looking and are able to perfectly…

Q: 1. Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public…

A: We are going to find the National savings, investment and consumption expenditure using economic…

Q: Suppose real GDP is $6,182 billion, taxes collected by the government are $719 billion, government…

A: Given  Real GDP (Y) = $6,182 billion Tax (T) = $719 billion  Government Spending (G) = $820 billion…

Q: Suppose the GDP of Brazil equals 1000, consumption equals 600, the government spending is 150 while…

A: Here we calculate the value of national savings by using the given information and choose the…

Q: Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public…

A: The closed economy is autonomous, ensuring that no shipments reach the nation and no shipments…

Q: Suppose GDP in this country is $1,540 million. Enter the amount for government purchases. National…

A: GDP is the value of all final goods and services produced in an economy over a given period of time.…

Q: tures are more t

A: A private closed economy is an economy being driven by consumer spending or consumption and private…

Q: Suppose that in a closed economy GDP is $50,000, consumption is $35,000, taxes are 10,000 and…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Suppose GDP is $8 trillion, taxes are $1.5 trillion,private saving is $0.5 trillion, and public…

A: National income is the total market value of all final goods and services produced in an economy…

Q: Suppose GDP equals $30 trillion, consumption equals $20 trillion, the government spends $4 trillion…

A: GDP is the value of final goods and services produced in the domestic territory in an given year,…

Q: Assume that GDP (Y ) is 5,000 in a closed economy. Consumption (C) is given by the equation C =…

A:

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.