Suppose that in a closed economy GDP is equal to 12 000,taxes are equal to 1500,consumption is equal to 6800,and government expenditures are equal to 2500.What is national saving?

Question

Quizplus · Accepted Answer

National saving (S) can be calculated by subtracting total consumption (C) and government expenditures (G) from GDP (Y) and then subtracting taxes (T): 
S = Y - C - G - T 
S = 12000 - 6800 - 2500 - 1500 
S = 2700

Suppose That in a Closed Economy GDP Is Equal to 12