2. Saving and investment in the national income accounts The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,800 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases (G�) Taxes minus Transfer Payments (T�) 585 Consumption (C�) 675 Investment (I�) 675 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S)National Saving (�) = = G - TG - T = = I� million Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private SavingPrivate Saving = = = = million Public SavingPublic Saving = = = = million Based on your calculations, the government is running a budget .
2. Saving and investment in the national income accounts The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,800 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases (G�) Taxes minus Transfer Payments (T�) 585 Consumption (C�) 675 Investment (I�) 675 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S)National Saving (�) = = G - TG - T = = I� million Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private SavingPrivate Saving = = = = million Public SavingPublic Saving = = = = million Based on your calculations, the government is running a budget .
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 1.3P
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2. Saving and investment in the national income accounts
The following table contains data for a hypothetical closed economy that uses the dollar as its currency.
Suppose GDP in this country is $1,800 million. Enter the amount for government purchases.
|
National Income Account
|
Value
|
|---|---|
|
(Millions of dollars)
|
|
| Government Purchases (G�) |
|
| Taxes minus Transfer Payments (T�) | 585 |
| Consumption (C�) | 675 |
| Investment (I�) | 675 |
Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table.
| National Saving (S)National Saving (�) | = = | G - TG - T |
| = = | I� | |
|
|
Complete the following table by using national income accounting identities to calculate private and public saving . In your calculations, use data from the initial table.
| Private SavingPrivate Saving | = = | |
| = = |
|
| Public SavingPublic Saving | = = | |
| = = |
|
Based on your calculations, the government is running a budget .
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