Question 2

Suppose that the aggregate income in a country is $100 billion, aggregate private consumption is $60 billion, and total tax payment is $20 billion.

How much does the private sector save in this economy? (Answer in billions of dollars.)

Question 7

This year in Country L, GDP is $500 billion, private consumption is $300 billion, government expenditure is $100 billion, and trade surplus is $20 billion. How much is total (public and private) domestic savings?

$80 billion

$150 billion

$120 billion

$100 billion

Question 10

Which of the following is a correct representation of Investment (I) in terms of other macroeconomic variables [GDP (Y), Private Consumption (C), Government Consumption (G), Trade Surplus (NX), and Domestic Savings (S)]? Select all that apply.

I=S-NX

I=S+NX

I= Domestic Saving + Foreign Saving

I=Y-C-G-NX