1. Saving and investment in the national income accounts

The following table contains data for a hypothetical closed economy that uses the dollar as its currency.

Suppose GDP in this country is $1,250 million. Enter the amount for government purchases.

National Income Account	Value
(Millions of dollars)
Government Purchases (GG)
Taxes minus Transfer Payments (TT)	300
Consumption (CC)	625
Investment (II)	375

Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table.

NationalSaving(S)NationalSaving(S)	==
	==
		million

Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table.

PrivateSavingPrivateSaving	==
	==	million

PublicSavingPublicSaving	==
	==	million

Based on your calculations, the government is running a budget .