Suppose that in a closed economy GDP is equal to 18,000, taxes are equal to 1500, consumption is equal to 8800, and government expenditures are equal to 2200. What is national saving?
A) 700
B) 5500
C) 7000
D) 9200

Question

Quizplus · Accepted Answer

National saving is equal to GDP minus consumption minus government expenditures plus taxes. In this case, national saving is equal to 18,000 - 8800 - 2200 + 1500 = 7000.

Suppose That in a Closed Economy GDP Is Equal to 18,000