Consider a closed economy without a government.If the GDP of the economy is $25,000 and the saving rate in the economy is 25 percent,the aggregate saving in the economy is ________.

Question

Quizplus · Accepted Answer

The aggregate saving in the economy is calculated as a percentage of the GDP. Given a saving rate of 25 percent and a GDP of $25,000, the aggregate saving is 25% of $25,000, which equals $6,250.

Consider a Closed Economy Without a Government