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Suppose that consumption is $2,200, investment is $350, and government spending is $500. The economy is...

Question

Suppose that consumption is $2,200, investment is $350, and government spending is $500. The economy is...

Suppose that consumption is $2,200, investment is $350, and government spending is $500. The economy is closed so there are n

Suppose that consumption is $2,200, investment is $350, and government spending is $500. The economy is closed so there are no net exports. Taxes are $425. Based on this information: National saving is $ Private saving is $ Government (public) saving is $ Enter whole numbers.

Answers

GDP = CONSUMPTION + INVESTMENT + GOVERNMENT SPENDING - TAXES

= 2200 + 350 + 500 - 425

= 2625

National saving = (GDP - T - C) + (T -G)

= GDP - C - G

= 2200 - 350 - 500

= 1350

Private saving = (GDP - T - C) = 2200 - 425 - 350 = 1425

Government saving = T-G = 425-500 = -75


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