The Economy of King's Landing The economy of King's Landing consists of an orange producer, some consumers, and the government. In the current year the orange producer grows 30 million oranges. The price for one orange in King's Landing is 5. Consumers bought 20 million oranges from the producer, 5 million oranges are stored as inventories, and 5 million are bought by the government to feed the King's Guard. The orange producer pays 60 million in wages to consumers and 20 million in taxes to the government. Consumers pay 10 million in taxes to the government, receive 10 million in interest on the government debt, and receive 5 million in pension payments from the government. The profits of the orange producer are distributed to consumers. The King of the Seven Kingdoms hired you to give a report at the next meeting of the Small Council which will have to make some crucial decisions, as war with Winterfell is imminent. Your report needs to be as precise and accurate as possible, since the penalty for bad advice is death by decapitation (the King doesn't mess around, and I hear he is completely crazy...)

a. Calculate the GDP in King's Landing.

b. Calculate private disposable income, private sector saving, government saving, national saving, and the government deficit. Is the King's Landing government budget in deficit or surplus?