Econ 1P92

1. Consider an economy in which GDP is $30 billion. Tax revenue is $7 billion, con- sumption is $15 billion,, and the government has a budget surplus of $2 billion. Show your work in each of the following questions. (10% each) (a) What is the level of government spending? (b) What is private saving? (c) What is national saving? (d) What is the level of investment