Scenario 26-1.Assume the following information for an imaginary,closed economy.
GDP = $110,000;consumption = $70,000;private saving = $8,000;national
saving = $12,000.
-Refer to Scenario 26-1.This economy's government is running a

Question

Quizplus · Accepted Answer

National saving is the sum of private saving and public saving. Given national saving is $12,000 and private saving is $8,000, public saving (government saving) is $4,000. Since public saving is positive, the government is running a budget surplus of $4,000.