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ng l as tle base yeär, what is the growth rate of real GDP from Year 1 to Year 2

ID: 1135013 • Letter: N

Question

ng l as tle base yeär, what is the growth rate of real GDP from Year 1 to Year 2? (5 points) Based on the GDP deflator, what is the inflation rate from Year 1 to Year 2? (5 points) b. at is the difference between nominal and real economic variables? Why do economists tend to concentrate on changes in real magnitudes? (5 points) 6. Wh 7. In a given year, a country's GDP $3843, net factor payments from abroad $191, taxes -$893, transfers received from the government $422, interest payments on the government's debt $366, consumption $3661, and government purchases $338. Calculate the values of private saving, government saving, and national saving. (10 points)

Explanation / Answer

Private saving = GDP - taxes - consumption + transfers = 3843 - 893 - 3661 + 422 = -289

Public saving = Tax revenues - spending - interest paid on debt - transfers = 893 - 338 - 366 - 422 = -233

National saving = Public saving + Private saving = -522.