Suppose that in a closed economy GDP is equal to 11,000,Taxes are equal to 1,500,Consumption equals 7,500,and Government purchases equal 2,000.What is national saving?

Question

Quizplus · Accepted Answer

National saving (S) is equal to GDP minus consumption and government purchases plus net exports (which are not given in this scenario, so assumed to be zero since it is a closed economy with no international trade). So:
S = GDP - C - G
S = 11,000 - 7,500 - 2,000
S = 1,500
Therefore, national saving is 1500.

Suppose That in a Closed Economy GDP Is Equal to 11,000,Taxes