Answer Happy

(6 pts) National savings is calculated as the sum of private andpublic savings. Private savings is that done by households and isequal to household income (which is equal to GDP due to thecircular flow of the economy) minus taxes paid and minusconsumption. In other words, what is left after you buy things andpay taxes. Public savings is what the government saves and is equalto the government budget, which in turn equals taxes received minusgovernment expenditures. Consider the following data for a closedeconomy (a country in which there are no imports or exports):
GDP = $11 trillion
Consumption = $8 trillion
Investment = $2 trillion
Taxes = $2 trillion
Calculate government purchases, public savings (make sure toindicate whether the government has a budget surplus or deficit),private savings, and national savings