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 __.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 1DQ

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Question

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 __________.

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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