Which of the following equations is a correct expression for national saving in the long run when real GDP equals potential output?

Question

Quizplus · Accepted Answer

National saving in the long run, when real GDP equals potential output (Y*), is correctly expressed as NS = Y* - C - G, where Y* is potential output, C is consumption, and G is government spending. This equation reflects the total saving in the economy, comprising both private and public saving, without explicitly separating taxes (T) from government spending.

Which of the Following Equations Is a Correct Expression for National