Suppose GDP is $40 million, private saving is $10 million, consumption is $26 million, and public saving is -$4 million.

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answerhappygod
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Suppose GDP is $40 million, private saving is $10 million, consumption is $26 million, and public saving is -$4 million.

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Suppose GDP is $40 million, private saving is $10 million, consumption is $26 million, and public saving is -$4 million. Assume the economy is closed.
(a) Calculate taxes minus transfer payments (T), government purchases (G), national saving (S), and investment (I).
(b) Is the government running a surplus or a deficit? Explain.
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