Suppose that in a closed economy GDP is equal to 15,000, government purchases are equal to 3,000, consumption equals 10,500, and taxes equal 3,500. What are private saving and public saving? Group of answer choices 1,500 and -500, respectively 1,500 and 500, respectively 1,000 and -500, respectively 1,000 and 500, respectively

Q: If national saving equals $100,000, net taxes equal $100,000 and government expenditure equals…

A: The entire amount of revenue in an economy that is not spent by individuals or companies and is thus…

Q: refer to the following table: Consumption expenditure (C)= 100+ 0.8 Yd Investment expenditure (1) =…

A: Answer: Given, C=100+0.8YdI=120-500iG=50 G rises by 100, Thus new G will be:G=150Taxes=0.1YMoney…

Q: Which of the following would be classified as private investment?   a. An individual’s purchase of…

A: Private investment: - It means the purchase of capital assets by private businesses, private…

Q: C= 250 + 0.75Yd G = 150 T= 200 |= 80 find the equilibrium level of income and private saving

A: Saving: It refers to the income that is not used by the people. The money which is saved by 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: 21. Which of the following equations is correct? A Saving = Disposable income + Consumption B-…

A: The answer to the question is as follows :

Q: 9. If disposable income is 4,000, consumption is 3,500, government spending is 1,000, and taxes…

A: Here, given information is, Disposable income (Y): 4,000 Consumption (C): 3,500 Government spending…

Q: If the average worker produces $110 of output per hour, what is the opportunity cost of…

A: Opportunity cost is the value of the best possible forgone when making a decision. It is the cost of…

Q: Assume an economy in which: (i) there are no exports and no imports, (ii) investors always want to…

A: The planned investment is the amount that the firms are intended to invest for purchasing new…

Q: Assume there are no investment projects in the economy that yield an expected rate of return of 25…

A: i and r% Cum. Investment 25% 0 20% $10 15% $20 10% $30 5% $40…

Q: Solve for the following a) investment: b) Private saving: c) public saving

A: An economic system that is not involved in international trade or any other economic transactions…

Q: Letea is a three-period model economy. Each period, there are 200 people born, and each person…

A: An economy may be thought of as a territory that is home to the production, distribution, and…

Q: 3. Consider the economy described by the following equations Y=C+I+G Y = 8,000 G=2,000 T = 1,000…

A: Given that; Y = 8,000G = 2,000T = 1,000C = 250 + 0.75(Y −T )I = 800 − 50r ------------------ C = 250…

Q: 20 SU C O 30 100 12010 IGO 180 200 (SLIO) Supods VA

A: Given information:-

Q: Show how consumption and savings evolve in an economy that starts with a level of capital well above…

A: Solow Growth Model is defined as a model which solely focuses on economic growth of a nation in the…

Q: Eleanor purchases stock in NanoSpeck, a biotech firm. Darnell purchases a new condominium in Denver.…

A: Savings means to save from money from the earning which is used in future purpose. Investment means…

Q: Problem 1 Given the following data for a closed economy I= 3400 Planned Investment G=4000 Government…

A: The term aggregate (AD) demand refers to the total quantity of services and commodities that are…

Q: Question 7 Use the market for saving and investment to show the effect of the following: Firms are…

A: Saving is the process of consistently building up cash, usually in a bank account. Individuals…

Q: a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. billion

A: Definition: A private closed economy is a sort of economy that is driven by buyer spending and…

Q: Explain the consumption function for a closed economy with a government sector

A: Consumption (C) is the usage of commodities and services by a household. The consumption function…

Q: Refer to problem 1. At equilibrium saving is equal to * $6040 $7200 $6400 $7650

A: I =3400 G= 4000 C = 3800 +0.8Yd T = 1000

Q: Soon after his election in 1992, President Clinton proposed reducing government spending and…

A: 1) President Clinton proposed reducing government spending and increasing taxes which will reduce…

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: In the C+I+G+X+M equation, investment would include which of the following? A. The export of heavy…

A: Here, the given equation shows the components of aggregate demand with C as consumption, I as…

Q: tion 11 nation's potential output/GDP is best described as: The maximum growth rate of output/GDP a…

A: GDP is the market value of final goods and services produced in the country within a period of time

Q: If there is an increase in the personal income tax rate, and people do not receive a pay increase,…

A: The tax is a unilateral payment made by the public towards the government for various purposes such…

Q: North Land, is a closed-border economy, have the following macroeconomic data: GDP= 35,000…

A: GDP is the sum of Consumption, Investment and government spending.  Private saving = Disposable…

Q: Read the following premise carefully and answer the questions specifically and in detail, you must…

A: The fiscal and monetary policies are used by the governments to achieve certain economic goals. The…

Q: Which of the following is true of disposable income? Group of answer choices It excludes transfer…

A: We are going to discuss the properties and various aspects of disposable income to answer this…

Q: a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. 2$ billion b.…

A: GDP is defined as the market prices of all goods and services produced in a domestic country in a…

Q: Disposable Income ($) Consumption ($) 1,000 800 1,100 880 1,200 960 1,300 1,040 1,400 1,120

A: The disposable income is the portion of the income which is left after the deduction of the taxes.…

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: QI) Using the following data calculate the value of multipliers under 1) Private Closed Economy…

A: An economy that is driven by business investment and consumer spending without any government or…

Q: You have an avocado tree, which grows 100 avocados this year, 60 next year. Your neighbor has an…

A: Consumption, in economics, the use of commodities and services by households. Consumption is…

Q: 42. Suppose a closed economy had public saving of −$6 trillion and private saving of $15 trillion.…

A: National Savings is the sum of public as well as private savings.  Given : Public Saving = -$6…

Q: Question 1: Consumption and Savings Functions (Show your work) Disposable Income Consumption Saving…

A: A disposable income of 0 corresponds to consumption of 500 and savings of -500, according to the…

Q: If Y = C+I, saving, S, is defined as S=Y-C and C=cY, what is the ratio of saving to income, S/Y a.…

A: The objective of the question is to find the ratio of saving to income, S/Y, given the equations Y =…

Q: 1. The following table is a consumption schedule. Assume taxes and transfer payments are zero and…

A: 1) Savings at each level would be  GDP= C+S So S= GDP-C  Gdp C S APC APS 1500 1540 -40 1.027…

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.