Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 21, Problem 21.2.8PA
Sub part (a):
To determine
The calculation of private saving for a closed economy.
Sub part (b):
To determine
The calculation of investment spending for a closed economy.
Sub part (c):
To determine
The calculation of transfer payment for a closed economy.
Sub part (d):
To determine
The calculation of government budget for a closed economy.
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Suppose GDP is $9 trillion, taxes are $1.9 trillion, private saving is $0.6 trillion, and public saving is $0.3 trillion.
Assuming the economy is closed, complete the following table by calculating consumption, government purchases, national saving, and investment.
Component
Consumption
Government Purchases
National Saving
Investment
Amount
(Trillions of dollars)
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private savings is $0.5 trillion, and public savings is $0.2 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving and investment.
Consider the following data for a closed economy:
Y = $14 trillion
C = $7 trillion
G = $2 trillion
= $ – 1.0 trillion
%3D
Spublic
T= $4 trillion
Use the data to calculate the following: (Enter your responses rounded to one decimal place.)
a. Private saving is: $
trillion.
b. Investment spending is: $
trillion.
c. Transfer payments are: $
trillion.
d. The government budget balance is: $
trillion and as a result the government budget is in
Chapter 21 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 21 - Prob. 21.1.1RQCh. 21 - Prob. 21.1.2RQCh. 21 - Prob. 21.1.3RQCh. 21 - Prob. 21.1.4RQCh. 21 - Prob. 21.1.5PACh. 21 - Prob. 21.1.6PACh. 21 - Prob. 21.1.7PACh. 21 - Prob. 21.1.8PACh. 21 - Prob. 21.1.9PACh. 21 - Prob. 21.1.10PA
Ch. 21 - Prob. 21.1.11PACh. 21 - Prob. 21.1.12PACh. 21 - Prob. 21.1.13PACh. 21 - Prob. 21.1.14PACh. 21 - Prob. 21.2.1RQCh. 21 - Prob. 21.2.2RQCh. 21 - Prob. 21.2.3RQCh. 21 - Prob. 21.2.5PACh. 21 - Prob. 21.2.6PACh. 21 - Prob. 21.2.7PACh. 21 - Prob. 21.2.8PACh. 21 - Prob. 21.2.9PACh. 21 - Prob. 21.2.10PACh. 21 - Prob. 21.2.11PACh. 21 - Prob. 21.2.12PACh. 21 - Prob. 21.2.13PACh. 21 - Prob. 21.2.14PACh. 21 - Prob. 21.2.15PACh. 21 - Prob. 21.2.17PACh. 21 - Prob. 21.3.2RQCh. 21 - Prob. 21.3.3RQCh. 21 - Prob. 21.3.4PACh. 21 - Prob. 21.3.5PACh. 21 - Prob. 21.3.6PACh. 21 - Prob. 21.3.7PACh. 21 - Prob. 21.3.8PACh. 21 - Prob. 21.3.9PACh. 21 - Prob. 21.1RDECh. 21 - Prob. 21.2RDECh. 21 - Prob. 21.3RDECh. 21 - Prob. 21.2CTE
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