If government purchases equal $100 million, consumption is $200 million, net exports are $0, and investment is $50 million, what are the national savings?$ million
Question
If government purchases equal 200 million, net exports are 50 million, what are the national savings?$ million
Solution
To calculate the national savings, we first need to calculate the Gross Domestic Product (GDP). The GDP is the sum of government purchases, consumption, net exports, and investment.
Step 1: Calculate GDP GDP = Government Purchases + Consumption + Net Exports + Investment GDP = 200 million + 50 million = $350 million
National savings is the part of GDP that is not consumed or spent by government. It is calculated as GDP minus consumption and government purchases.
Step 2: Calculate National Savings National Savings = GDP - Consumption - Government Purchases National Savings = 200 million - 50 million
So, the national savings are $50 million.
Similar Questions
Consider a closed economy. Household saving is $300, business saving is $700, government purchases are $1000, government transfers and interest payments are $500, government tax collections are $1300, and GDP is $5000. What is national saving?Group of answer choices$1000$500$800$0
If GDP (measured in billions of current dollars) is $5,465, consumption is $3,657, investment is $741, and net exports are –$1,910, then government purchases are:
National output: $200000,Taxes: $10000,Consumption: $6000,Government Expenditures: $2000,Find Private Savings and Public Savings
For a closed economy, GDP is $29 trillion, consumption is $9 trillion, taxes are $2.0 trillion and the government runs a surplus of $4 trillion. What are private saving and national saving?Group of answer choices$18.0 trillion and $22.0 trillion, respectively$22.0 trillion and $18.0 trillion, respectively−$18.0 trillion and −$22.0 trillion, respectively−$18.0 trillion and $22.0 trillion, respectively
Use the following information of a hypothetical economy to answer this question: National Income (Y) = 5,200; Government Budget Deficit = 150; Disposable Income (Yd) = 4,400; and Consumption (C) = 4,100. The value of Investment (I) is Group of answer choices 150 260 270 280 none of the above
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.