Suppose GDP is 10.3 trillion, taxes are 1.8 trillion, private saving is 1.2 trillion and public saving is 0.2 trillion. Assuming this economy is closed, calculate: consumption, government purchases, national saving and investment.

Q: Suppose the U.S. has a closed economy with GDP (Y) equal to $19.4 trillion, consumption (C) equal to…

A: Here, the information about the income and the components of AD, such as consumption, government…

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A: Y=Consumption+Investment+Government purchase+Net Exports Y=350+100+125+(60-50)Y=575+10Y=585

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A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: National saving equals private saving plus governm O A. GDP + NFP – C – G. B. GDP + C + G. C. C+ S +…

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Q: National savings is

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A:

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A: Answer in step 2.

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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.