Please don't use hand writing

ECON 201

Q2:

Suppose GDP equals $09 trillion, consumption equals $3 trillion, the government spends $2.5 trillion and has a budget deficit of $450 billion.

Try to find public saving, taxes, private saving, national saving, and investment.

(3 Marks)

Q3:

What is the Catch-Up Effect. Explain it by giving some Examples. (2 Marks)