Suppose that in a closed economy GDP is equal to 11,000,taxes are equal to 1,500,consumption equals 7,500,and government purchases equal 2,000.What is national saving?

Question

Quizplus · Accepted Answer

National saving is the difference between income and expenditures. In this case, income is equal to GDP (11,000), and expenditures are consumption (7,500) and government purchases (2,000). Therefore, national saving is 11,000 - 7,500 - 2,000 = 1,500.

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