Question
2. Saving and investment in the national income accounts The following table contains data for a hypothetical closed economy that uses the dollar as its
2. 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 $1,665 million. Enter the amount for investment.
| National Income Account | Value |
|---|---|
| (Millions of dollars) | |
| Government Purchases (G) | 450 |
| Taxes minus Transfer Payments (T) | 360 |
| Consumption (C) | 900 |
| Investment (I) |
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() | == | |
== | ||
| 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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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123968
