mework (Ln 13) Due Today at 11.39 PM EDT Back to Assignment Attempts: Keep the H

Question

mework (Ln 13) Due Today at 11.39 PM EDT Back to Assignment Attempts: Keep the Highest: 15 2. Saving and investment in the national income accounts The following table contains data for a hypothetical closed economy that uses the dollar as its currency Suppose GDP in this country is $1,680 milion. Enter the amount for consumption. National Inceme AccountCMillions of doliars) Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment () 360 Complete the following table by using national income accounting identsbies to preceding table. calculate national saving. In your calculations, use data from the National Saving (5) Complete the following table by using national inceme accounting ideneties to calculate private and public saving in your calculations, use Private Soving 2 3 4

Explanation / Answer

ans :

1. C = Y - G - I = 1680 - 400 - 280 = 1000

2. we know in a closed economy Savings = Investment

hence , national savings = 280

3.(Y ? T + TR ? C) = private savings.

pvt savings = Y - (T-TR) -C = 1680 - 360 -1000 = 320

4.Public savings, also known as the budget surplus is the term (T ? G ? TR), which is government revenue through taxes, minus government expenditures, minus transfers.

Public savings = T-TR -G = 360 - 400 = -40 (dissavings)

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