Consider a closed economy. If national saving is 1000, GDP is 6000, and consumption is 4500. Further assume that the government has a deficit of 400. If transfer and net interest payment is 400, the tax revenue is ________ and private saving is __________.
Consider a closed economy. If national saving is 1000, GDP is 6000, and consumption is 4500. Further assume that the government has a deficit of 400. If transfer and net interest payment is 400, the tax revenue is ________ and private saving is __________.
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section: Chapter Questions
Problem 1DQ
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Consider a closed economy. If national saving is 1000,
consumption is 4500. Further assume that the government has a deficit of 400. If
transfer and net interest payment is 400, the tax revenue is ________ and private
saving is __________.
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