Suppose GDP is $40 million, private saving is $10 million, consumption is $26 million, and public saving is -$4 million.
Posted: Thu May 19, 2022 9:51 am
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.
(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.