Must solve B...asap Q.3а.Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion,and public saving is $0.2 trillion. Assuming this economy is closed, calculateconsumption, government purchases, national saving, and investment.b.Imagine that the government starts with a balanced budget and then, becauseof decrease in government purchases, starts running a budget surplus. Graphicallyanalyze the effects of the budget surplus on interest rate, saving and investment ifloanable funds means the flow of resources available from private saving

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

Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment. а.

Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment. а.

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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Q.3
а.
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion,
and public saving is $0.2 trillion. Assuming this economy is closed, calculate
consumption, government purchases, national saving, and investment.
b.
Imagine that the government starts with a balanced budget and then, because
of decrease in government purchases, starts running a budget surplus. Graphically
analyze the effects of the budget surplus on interest rate, saving and investment if
loanable funds means the flow of resources available from private saving

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