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

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: In a closed economy, the gross domestic product is $25,000, consumption is $8,200 and taxes are…

A: Answer to the question is as under:

Q: Explain the difference between a flow variable and a stock variable. Classify each of the following…

A: Flow Variable -  Flow variables are the variables which measure over a period of time means . We can…

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: Suppose GDP is $10 trillion, taxes are $2.5 trillion, private saving is $1.5 trillion, and public…

A: In a closed economy, GDP is the sum of the consumption, government purchase and investment and that…

Q: Suppose GDP is $12 trillion, taxes are $3.6 trillion, private saving is $1.5 trillion, and public…

A: GDP can be found out by the sum of these three components: Where, C is the consumption I is the…

Q: Suppose Economist in England, a closed economy, have collected the following information about the…

A: In a closed economy, the equilibrium will be attained when GDP equal to the sum of consumption,…

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: If consumption expenditures are $1800 million, gross investment is $450 million, imports are $350…

A: Given consumption expenditures(C) =  $1800 million, gross investment(I)  =  $450 million, imports(M)…

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: What is the impact on the national saving rate if the consumption and government share each increase…

A: Answer in step 2.

Q: In a given year, a country's GDP = $9,841, net factor payments from abroad = $889, taxes = $869,…

A: Public savings plus private savings make up national savings. It represents the domestic supply of…

Q: A national newspaper’s headline reads “Business Confidence Reaches Highest Level in 5 Years.” (a)…

A: In economics, the loanable funds notion is a market interest rate theory. According to this…

Q: = $1 trillion, Consider a closed economy in which C = $345 billion, G = $350 billion, and T = $100…

A: In closed economy  Y= C+ I+ G  to calculate overall level of saving  Y - C -G = I  ( since saving =…

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: If consumption expenditures are $1800 million, gross investment is $450 million, imports are $350…

A: The output or the real GDP would be the sum of the consumption,investment, government expenditure,…

Q: Consider a closed economy without a government. If the GDP of the economy is $63,000 and the…

A: Equilibrium without government is at Y= C + I Y= income  C= consumption  I= investment

Q: Suppose GDP-11 billion, taxes-3 billion, private saving-0.9 billion, and public saving-0.6 billion:…

A: Consumptiin spending=GDP-taxes =11-3=8

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: 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: The following national accounting data are available for an economy for 2020. $ Billion GDP 950…

A: The income which would result in the national income as a result the savings would result in the…

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: 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: Suppose GDP is $9 trillion, taxes are $1.9 trillion, private saving is $0.6 trillion, and public…

A: We can utilize the national income identity here. Y= C+ I +G C= Y - I - G I=S National Saving =…

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

A: GDP means gross domestic product which can be calculated using value added method, income method and…

Q: 2.In each of the following, calculate private, public and national savings and the national savings…

A: With Given information, We can calculate         Govt savings (public savings) = Tax collections…

Q: Suppose GDP is Rs.15 trillion, taxes are Rs.5.5 trillion, private saving is Rs.2 trillion, and…

A: Here we calculate the following  terms by using the given information , so the calculation of the…

Q: If net personal taxes rise, what happens to private saving ? Public saving ?

A: In an economy, taxes refers to the expenditure by the people and revenue of the government because…

Q: In each part that follows, use the economic data given to find national saving, private saving,…

A:

Q: Suppose real GDP is $5,136 billion, taxes collected by the government are $535 billion, government…

A: The savings refers to as the level of amount remaining after all the consumption expenditure…

Q: DP in an economy is $4,600 billion. Consumer  expenditures are $3,500 billion, government purchases…

A: GDP = Consumption + Government spending + Gross investment + Net exports 4600 = 3500 + 900 + 400 +…

Q: A national newspaper's headline reads "Business Confidence Reaches Highest Level in 5 Years." (a)…

A: a) If the business confidence increases, they want to invest in new projects and assets and for…

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

A:

Q: Consider a closed economy in which I = $20, 000, 000, 000, G = $45,000, 000, 000, Y = $100, 000,…

A: (1) Total saving and investment are equal in the three-sector economy model.  Investment is…

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.