Question
Suppose a closed economy has GDP = 100,000 dollars In this country, household consumption is worth 60,000 dollars. Investment is equal to 20,000 dollars and
Suppose a closed economy has GDP = 100,000 dollars
In this country, household consumption is worth 60,000 dollars. Investment is equal to 20,000 dollars and taxes are equal to 30,000 dollars.
(a) How much is public saving in this economy?
(b) Is the government running a budget deficit/budget surplus/balanced budget?
Show your work for both parts.
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
