O4PLCOA8010100000040b059100500008ck m 1531350125534 OAAA0628015E1DTEE1E22CE90000

Question

O4PLCOA8010100000040b059100500008ck m 1531350125534 OAAA0628015E1DTEE1E22CE90000 2. Saving and investment in the national income accounts The following table contains data for a hypothetical dlosed economy that uses the dolar as its currency. Suppose GOP in this country is $1,540 million. Enter the amount for govemment purchases Value (Millions of dollars) National Income Account Government Purchases (C) Taxes minus Transfer Payments (T) 455 700 Investment () national saving. In your calculations, use dita from the Complete the following table by using national income accounting identities to calculabe preoeding table National Saning (S)- Com the following table by uang nasonal rcime accourting dettes to caculate private and pubic saving. In your calculations, use data fem the inbal cable Priate Saring Based on yeur calculations, the govenment is runnieg a budger

Explanation / Answer

Y= C+I+G 1540=700+490+G G= $350 M Government Purchase=Y-C-I =1540-700-490= $350 M National Saving (S)=I =$490 M Private Saving=Y-C-I =1540-700-455 =$385M Public Saving = T-G =455-350=$105 M Goverment Saving is running a Budget Surplus

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