ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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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
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- Assume that GDP ( y) is 6.000. Consumption (C) is given by the equation C= 600 + 06(Y-T). Investment (I )is given by the equation I=2,000- 100r, where r is the real rate of interest in percent. Taxes (T) are government spending (G) is also 500 a. What are the equilibrium values of C, I, and r? b) What are the values of private saving, public saving, and national saving? ·arrow_forwardFill in the table and derive the consumption and saving functions. Disposable income Consumption Saving 240 -4 260 280 4 300 8. 320 12 340 16 360 20 380 24 400 28 Draw the graphs and find the break even point of disposable income.arrow_forward6. An economy at equilibrium has Y = 1,200, S = 100, G = 100 and C = 800. Find the levelof public saving, (T – G), for this economy.arrow_forward
- Consider a closed economy without a government. If the GDP of the economy is $63,000 and the consumption in the economy is $45,000, the saving rate in the economy is ________. 86 percent 24 percent 57 percent 75 percentarrow_forwardCountry A is in a closed economy. Please calculate the public, and private savings for country A with the information below. (unit= billions) GDP 15 Consumption 4 Government Spending Investment ? 2 Tax Revenue 4 A. Public = 2; Private = 5 B. Public = -5; Private=7 C. Public = 7; Private = -5 D. Public = -9; Private = 11arrow_forwardNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Suppose an economy’s steady-state investment rate I/Y is 30 percentwhen the corporate tax rate is zero. What happens to this investmentrate if the corporate tax rate rises to 20 percent? 30 percent?arrow_forwardSuppose 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? 1,500 and -500, respectively 1,500 and 500, respectively 1,000 and -500, respectively 1,000 and 50O, respectivelyarrow_forwardPlease take your time to help me because so many answers are wrong. Help with b, c and dConsider an economy described by the following equations:Y=C + I +GY=7,000G=4000T=2,000C=150+0.75(Y-T)I=1,000-50ra. In this economy, compute private saving, public saving and national saving.b. Calculate the equilibrium interest rate. include a graph to support answerc. Now suppose the G rises by 1,000. Compute private saving, public saving, andnational saving. Include a graph to support answerd. Calculate the new equilibrium interest rate. include a graph to support answerarrow_forward
- Please answer only the (d) and (e) questions Thankyouarrow_forwardConsider the expressions T-G and Y-T-C. Which of the following statements is correct? Each one of these is equal to national saving. Each one of these is equal to public saving. The first of these is private saving; the second one is public saving. The first of these is public saving; the second one is private saving.arrow_forwardnote : you dont use excel please.arrow_forward
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