Question
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
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 $680 million. Enter the amount for consumption.
| National Income Account | Value |
|---|---|
| (Millions of dollars) | |
| Government Purchases (GG) | 200 |
| Taxes minus Transfer Payments (TT) | 180 |
| Consumption (CC) | |
| Investment (II) | 180 |
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 .
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
