Suppose that consumption is 7500,taxes are 1800,and government expenditures are 1500.If national saving is 1500 and the economy is closed,what is the GDP?
A) 9500
B) 10,000
C) 10,500
D) 11,200

Name: Suppose that consumption is 7500,taxes are 1800,and government expenditures are 1500.If national saving is 1500 and the economy is closed,what is the GDP? A) 9500 B) 10,000 C) 10,500 D) 11,200
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Question

Quizplus · Accepted Answer

National saving (S) = Investment (I)
S = Y - C - G  (where Y = GDP)
1500 = Y - 7500 - 1500
Y = 10,500

Suppose That Consumption Is 7500,taxes Are 1800,and Government Expenditures Are