Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 1,000, consumption equals 7,500, and government purchases equal 2,000. What is national saving? -500 2,000 500 None of the above is correct.

Q: $2 million. Primary income payments are $4 m and primary income receipts are $6 million. Determine…

A: GDP measures the value of goods and services produced within a country's borders, by citizens and…

Q: Briefly explain what a change in any part of the national saving and investment identity points out.

A:

Q: How to calculate GDP by spending method in a closed economy?  A) C+I+G  B) C+I+G+NX  C) C+G…

A: A closed economy refers to the one that do not make trade activities with the other nations in the…

Q: Exports (x) 10 rnment Purchases of goods and services (G) 120 Imports (m) 15 Gross Domestic Product…

A:

Q: Consider the following data (in billion $) for a country in a particular year: (assume this country…

A: (Since you have a posted a question with multiple sub-parts, we will solve the first three sub-part…

Q: Suppose GDP in this country is $900 million. Enter the amount for consumption. Value National Income…

A: GDP in an economy can be calculated using following formula:

Q: Scenario 1. Assume the following information for an imaginary, closed economy. GDP = $100,000; taxes…

A: The economy is closed GDP is $100,000 Taxes is $22,000 Government purchases are $25,000 National…

Q: Graph the market for loanable funds such that current national saving is at a level of $500 million…

A: In market for loanable funds, equilibrium occurs where quantity of loanable funds demanded is equal…

Q: Find national Savings given that :- National domestic income = $3100 million National consumption…

A: The data presented in the question above is:- National domestic income = $3100 million National…

Q: In a closed economy, the gross domestic product is $33,000, consumption is $11,300 and taxes are…

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

Q: A closed economy has income of $1,000, government spending of $200, taxes of $150,and investment of…

A: "Savings refers to the process of setting aside some part of income for future use." Individuals may…

Q: Suppose  GDP = $9.0 trillion C= $5.0 trillion  G= $2.0 trillion  T-G  = $300 billion  With the…

A: Y = C + I + G + NX Where, Y = GDP, C = Consumption, G = Government Purchases, NX = Net Exports ie…

Q: a. Show the national income identity equation for a closed economy. b. Use the expression in a to…

A: Answer: (a). Closed economy: A economy that is not open to trade is called a closed economy. The…

Q: Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 – 200r I= Investment G…

A: In this given closed economy the aggregate expenditure (Ye) is equal to the sum of consumption (C),…

Q: consumption and investment: C = 1,000 + (2/3)*(Y – T) and I = 1,200 – 100*r. Furthermore, Y = 8,000,…

A: Given values:C = 1,000 + (2/3)*(Y – T)I = 1,200 – 100*rY=8000G=2500T=2000

Q: Explain how overall national savings is related to overall investment and why savings is always…

A: We will use a Keynesian and Classical approach to establish the similarity between savings and…

Q: About 1.1 Swiss Franc (CHF) can be bought on the open market for 1 USD. If the Swiss GDP is 80,000…

A: (Q) About 1.1 Swiss Franc (CHF) can be bought on the open market for 1 USD. If the Swiss GDP is…

Q: 49. What could increase investment spending?     a) An increase in inflation.     b) An increase…

A: The correct option is    e) A technological breakthrough creating new products or improving…

Q: A closed economy has income of $1,200 billion, government spending of $220 billion, taxes of $170…

A: Answer: Given, IncomeY=$1,200 billionGovernment spendingG=$220 billionTaxT=$170 billionInvestment…

Q: 33. The expenditure approach to calculating GDP for an open economy entails adding consumption,…

A: The expenditure approach is a strategy for computing a country's total national output (GDP) by…

Q: suppose that in a closed economy GDP is equal to 22,000, taxes are equal to 7000, consumption is…

A: Given, GDP (Y) = 22,000 Taxes (T) = 7000 Consumption (C) = 13,000 Government expenditure (G) = 4000

Q: Complete the following table by using national income accounting identities to calculate national…

A: GDP refers that gross domestic product which  shows the production of goods and services , In closed…

Q: Last year a country purchased $1.5 trillion worth of goods and services from foreign countries, sold…

A: here we calculate the value of domestic investment by using the given data so the calculation is as…

Q: In 2020, the U.S. purchased $1.5 billion worth of goods and services from foreign countries, sold $2…

A: We know that national saving of country includes private + public saving saving and it the…

Q: Household saving = $200, Business Saving = $400, Government Purchases = $100, Government transfer…

A: Household saving = $200 Business Saving = $400 Government Purchases = $100, Government transfer…

Q: National Income Account (Millions of dollars) Government Purchases (G) 350 Taxes minus Transfer…

A: Given, GDP = $1,680 million Government purchase (G) = 350 million Taxes minus transfer payment = 420…

Q: n the base year, a country produced 50 units of output at a price of R6,00 each for a nominal GDP of…

A: GDP is a macroeconomic measure used in the computation of the aggregate total output produced in an…

Q: Suppose GDP is $16 trillion, with $10 trillion coming from consumption, $2 trillion coming from…

A: The Gross Domestic Product (GDP) is the value of goods and services produced within the domestic…

Q: What are the effect of taxes on saving and consumption of less income people in low income…

A: Taxes is the compulsory payment levied by the government on the citizens of the country. Government…

Q: An economy consumes 1 million chickens each year. A new technology in raising chickens lowers the…

A: The GDP that is saved instead of spent in an economy is referred the be as national saving. It is…

Q: Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 1,500, consumption…

A: The closed economy is the type of economy in which there are no trade relations exists with the…

Q: Please solve using a national income accounting That tax increases (with no change in transfer…

A: The national income accounting measures the overall health of the economy. To measure the national…

Q: Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 – 200r I= Investment G…

A: Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 – 200r I= Investment…

Q: In country B, consumption is $10 million, exports are $4 million, government purchases are $3…

A: a)GDP Consumption+government expenditure+investment+net exports(exports-imports) =10+3+2+(4-5)…

Q: It is known that the economic data of a country is as follows: Y=C+I+G+NX,  C=800+0.8(Yd),…

A: GDP or gross domestic product is the measure of the value of total output produced within the…

Q: Assume the following information for an imaginary, closed economy.   GDP = $120,000;…

A: GDP is equal to $120,000. private saving equal $9,000 and the national saving equal $12,000.

Q: Q.1.5 In the base year, a country produced 50 units of output at a price of R6,00 eac for a nominal…

A: The ultimate financial value of merchandise and services generated inside a domestic country over a…

Q: Suppose that every additional 3 percentage points in the investment rate boosts GDP growth by 1…

A: Answer a) GivenInvestmtment = 2GDP = 14 so, Investment Rate = Investment/ GDP…

Q: A closed economy has income of $1000, government spending of $200, taxes of $150, and investment of…

A: A closed economy is a type of economy in which the trading of goods and services won’t happen with…

Q: Scenario 1. Assume the following information for an imaginary, closed economy. GDP = $100,000; taxes…

A: The economy is closed. GDP is $100,000 Taxes is $22,000 Government purchases are $25,000 National…

Q: Calculate the value of consumption of fixed capital from the following:- NNP at FC = 4,000 GDP at…

A: The given information is as follows:- NNP at FC = 4,000 GDP at MP = 5,000 Net indirect taxes = 300…

Q: Currently, the US has a total consumption of $12 trillion, saving of $6 trillion, tax revenues of $5…

A: Answer -

Q: Define private saving, public saving and national saving. How are they related?

A: Savings is the income which is not spent on the consumption and saved for future consumption.

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.