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

Question

Quizplus · Accepted Answer

Private saving is GDP - Taxes - Consumption = 11,000 - 2,500 - 7,500 = 1,000. Public saving is Taxes - Government purchases = 2,500 - 2,000 = 500. National saving is Private saving + Public saving = 1,000 + 500 = 1,500.

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