a)

Given consumption expenditure of $2,000,000, investment spending of $100,000, government purchases of $10,000,000, and net exports of $500,000 in Australia for the 2017-2018 time period.

1. Calculate production (or income) of the country?

2. Calculate Nation's saving of the country?

b)

Given consumption expenditure of $700,000, investment spending of $200,000, government purchases of $2,000,000, export of $500,000, import of 300,000, and Tax of $600,000 in a hypothetical country.

1. Calculate the saving of private sector?

2. Calculate the saving of government sector, is it a surplus or deficits

3. What are the three reasons for household savings and what could be any potential

reasons that the household saving rate is decreasing?