Q5 Suppose a closed economy has the following attributes: Calculate private savi
ID: 1165054 • Letter: Q
Question
Q5
Suppose a closed economy has the following attributes:
Calculate private saving and national saving.
Private saving = 2,000 and National Saving = 3,000
Private saving = 3,000 and National Saving = 1,000
Private saving = 2,000 and National Saving = 2,000
Private saving = 3,000 and National Saving = 2,000
Q7
Which foreign policies tend to increase an economy's long-run real GDP per person?
The introduction of restrictions on both foreign trade and foreign investment
The elimination of restrictions on both foreign trade and foreign investment
The introduction of restrictions on foreign trade and the elimination of restrictions on foreign investment
The elimination of restrictions on foreign trade and the introduction of restrictions on foreign investment
GDP 18,000 Consumption 13,000 Taxes 2,000 Public Saving -1,000Explanation / Answer
5) GDP is the income so private saving = Y - C - T = 18000 - 13000 - 2000 = 3000. Now national saving = prublic saving + private saving = 3000 - 1000 = 2000. Correct choice is D.
7) Option B. Long run should not have restricted trade as it reduces income levels of some sectors. Real GDP per capita is higher when investment is full and trade is free.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.