Suppose that consumption is 7500,taxes are 1800,and government expenditures are 2200.If national saving is 1500 and the economy is closed,what is the GDP?

Question

Quizplus · Accepted Answer

In a closed economy, GDP (Y) is calculated as Y = C + I + G. National saving (S) is equal to Y - C - G. Given S = 1500, C = 7500, and G = 2200, we solve for Y: 1500 = Y - 7500 - 2200, which gives Y = 11,200.

Suppose That Consumption Is 7500,taxes Are 1800,and Government Expenditures Are