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Suppose the government runs a budget deficit of 20, tax revenues are 30, consumption expenditures are 90, the current account (trade) deficit is 10 and
Suppose the government runs a budget deficit of 20, tax revenues are 30, consumption expenditures are 90, the current account (trade) deficit is 10 and national saving (private plus public) is 50. a) Calculate GDP. Show your derivations. b) Calculate private saving. Show your derivations. c) The government of this country imposes some restrictions to trade that result on the elimination of the trade deficit. Nonetheless neither households nor the government change their level of sav- ing, i.e. national saving still remains at 50. What is the impact on investment of the restrictions to trade? Explain your
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