Answered: if Government Spending (G) is $200…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

if Government Spending (G) is $200 million, Tax Revenue (T) is $260 millio Consumption is $300 million, and GDP P(Y) is 780 millionPrivate saving is

Expert Solution

Step 1

Private saving is the saving of the private sector that is the savings of all the households and the business savings. It is calculated by substracting the total consumption spending and the taxes paid from the GDP. The formula for private savings is:

$P r i v a t e s a v i n g s = G D P (Y) - C - T$

Substituting the given values in the equation we have:

$P r i v a t e s a v i n g s = 780 - 300 - 260 P r i v a t e s a v i n g s = $ 220$

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions