Principles of Economics (MindTap Course List)
8th Edition
ISBN: 9781305585126
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 26, Problem 4PA
To determine
The consumption, government purchases, national savings and investment.
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Suppose GDP is $800 billion, taxes are $150 billion, private saving is $50 billion, and public saving is $20 billion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment.
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Economics
Suppose GDP is $10 trillion, taxes are $2.5 trillion, private saving is $1.5 trillion, and public saving is $0.5 trillion. Assuming this economy is closed; calculate consumption, government purchases, national saving, and investment.[
Chapter 26 Solutions
Principles of Economics (MindTap Course List)
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- For a closed economy, GDP is $18 trillion, consumption is $13 trillion, taxes are $2 trillion and the government runs a deficit of $1 trillion. What are private saving and national saving?arrow_forwardSuppose real GDP is $6,182 billion, taxes collected by the government are $719 billion, government spending is $820 billion, and consumption spending is $4,478 billion. What is the value of national saving?arrow_forwardIf Government Spending (G) is 200 million, Tax Revenue (T) is $260 million \$2 Consumption is $300 million, and GDP (Y) is 780 million. Public saving isarrow_forward
- Consider an economy in which GDP is $8.2 trillion, public saving is -$0.2 trillion, taxes are $0.9 trillion, private saving is $3.0 trillion, export is $0.6 trillion, and import is $0.5 trillion. Calculate government purchases. Calculate national saving and investment. Calculate consumption.arrow_forwardSuppose GDP is Rs.15 trillion, taxes are Rs.5.5 trillion, private saving is Rs.2 trillion, and public saving is Rs. 2.5 trillion. Assuming this economy is closed, Calculate a) Government purchases b) National saving c) Consumption d) If the government increases taxes to 6.5 trillion, calculate private Savingarrow_forwardA closed economy has income of $1000, government spending of $200, taxes of $150, and investment of $250. What is private saving?arrow_forward
- Classify each of the following based on the macroeconomic definitions of saving and investment.arrow_forwardOR b. Suppose GDP equals $10 trillion, consumption equals $6 trillion, the government spends $2 trillion and has a budget deficit of $500 billion. Given the above, find the following: public saving, taxes, private saving, national saving, and investment. Show your work!arrow_forwardExplain how China’s real GDP can grow at a 6.9 percent rate when consumption and investment grew faster than 6.9 percent.arrow_forward
- Consider country A, which is a closed economy. Suppose that A’s private saving is 280 and investment is 250. What is the public saving? Consider country B, which is a closed economy. B’s private saving is 500, its government spending is 100, budget deficit is 50, consumption is 1000. what is the B’s investment and the disposable income, Y – T (Y is the total income, T is tax revenue)?arrow_forwardAssume that GDP is $6,000, personal disposable income is $5,100, and the government budget deficit is $200. Consumption is $3,800, and the trade deficit is $100. a. How large is saving ( S )? b. How large is investment ( I )? c. How large is government spending ( G )?arrow_forwardmjarrow_forward
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