Suppose that in a closed economy GDP is equal to 11,000,Taxes are equal to 2,500,Consumption equals 7,000,and Government purchases equal 3,000.What are private saving and public saving?

Question

Quizplus · Accepted Answer

Private saving is calculated as GDP - Taxes - Consumption, which is 11,000 - 2,500 - 7,000 = 1,500. Public saving is calculated as Taxes - Government purchases, which is 2,500 - 3,000 = -500.

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