Question
In: Economics
Saving and investment in the national income accounts The following table contains data for a hypothetical...
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 $1,680 million. Enter the amount for investment.
|
National Income Account |
Value |
|---|---|
|
(Millions of dollars) |
|
| Government Purchases (GG) | 400 |
| Taxes minus Transfer Payments (TT) | 360 |
| Consumption (CC) | 1,000 |
| Investment (II) |
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 (S) | = = | |
| = = | ||
|
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 .
Solutions
Expert Solution
Investment (I)= Y - C - G = 1680 - 1000 - 400 = $280 million
National savings = I = $280 million
Private savings = Y - C - TT = 1680 - 1000 - 360 = $320 million
Public Savings = TT - G = 360 - 400 = -$40
Based on your calculations, the government is running a deficit budget.
Because G > TT
Rahul Sunny answered 2 years agoRelated Solutions
2. Saving and investment in the national income accounts The following table contains data for a...
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 $1,175 million. Enter the amount
for government purchases.
National Income Account
Value
(Millions of dollars)
Government Purchases (GG)
Taxes minus Transfer Payments (TT)
225
Consumption (CC)
625
Investment (II)
300
Complete the following table by using national income accounting
identities to calculate national saving. In your calculations, use...
2. Saving and investment in the national income accounts The following table contains data for a...
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 $800 million. Enter the amount for government purchases.
National Income Account Value (Millions of dollars) Government
Purchases (G) 200 Taxes minus Transfer Payments (T) 260 Consumption
(C) 300 Investment (I) 300 Complete the following table by using
national income accounting identities to calculate national saving.
In your calculations,...
The table below shows the national income accounts for a hypothetical economy, Metrica. ($ billions) Corporate...
The table below shows the national income accounts for a
hypothetical economy, Metrica.
($ billions)
Corporate income
91
Exports
67
Wages and salaries
496
Net international income to the rest of the world
4
Gross investment
140
Government purchases
164
Indirect taxes
67
Personal consumption
440
Imports
24
Depreciation
69
Proprietors' incomes and rents
50
Statistical discrepancy
?
a. The income-based estimate of Metrica's GDP is
$ billion.
b. The expenditure-based estimate of Metrica's GDP is
$ billion.
c. The value of...
The following table contains data for a hypothetical closed economy that uses the dollar as its...
The following table contains data for a hypothetical closed
economy that uses the dollar as its currency.
Suppose GDP in this country is $925 million. Enter the amount
for consumption.
National Income Account
Value
(Millions of dollars)
Government Purchases (GG)
250
Taxes minus Transfer Payments (TT)
200
Consumption (CC)
Investment (II)
175
Fill the blank above for Consumption(CC)
Complete the following table by using national income accounting
identities to calculate national saving. In your calculations, use
data from the preceding...
The following table contains data for a hypothetical closed economy that uses the dollar as its...
The following table contains data for a hypothetical closed
economy that uses the dollar as its currency.
Suppose GDP in this country is $1,680 million. Enter the amount
for consumption.
National Income Account
Value
(Millions of dollars)
Government Purchases (GG)
350
Taxes minus Transfer Payments (TT)
420
Consumption (CC)
Investment (II)
455
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 (S)...
The following table contains data for a hypothetical closed economy that uses the dollar as its...
The following table contains data for a hypothetical closed
economy that uses the dollar as its currency.
Suppose GDP in this country is $1,175 million. Enter the amount
for consumption.
National Income Account
Value
(Millions of dollars)
Government Purchases (GG )
250
Taxes minus Transfer Payments (TT )
225
Consumption (CC )
Investment (II )
300
Points:
Close Explanation
Explanation:
Complete the following table by using national income accounting
identities to calculate national saving. In your calculations, use
data from...
The following table contains data for a hypothetical closed economy that uses the dollar as its...
The following table contains data for a hypothetical closed
economy that uses the dollar as its currency.
Suppose GDP in this country is $320 million. Enter the amount
for government purchases.
National Income Account
Value
(Millions of
dollars)
Government
Purchases (GG)
Taxes minus
Transfer Payments (TT)
110
Consumption
(CC)
150
Investment
(II)
70
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...
The following are national income account data for a hypothetical economy in billions of dollars: gross...
The following are national income account data for a
hypothetical economy in billions of dollars: gross private domestic
investment ($120); imports ($35); exports ($22); personal
consumption expenditures ($2,460); and, government purchases
($470). What is GDP in this economy?
A. $3,037 billion
B. $3,290 billion
C. $3,250 billion
Answer the following questions on the basis of the following hypothetical national income data. SHOW YOUR...
Answer the following questions on the basis of the following
hypothetical national income data. SHOW YOUR WORK.
Interest paid by
consumers------------------------------------- $ 15
Government purchases of goods &
services--------------- 400
Social Security
taxes---------------------------------------------- 135
Personal
taxes------------------------------------------------------ 320
Corporate income
taxes----------------------------------------- 20
Indirect business
taxes------------------------------------------- 50
Transfer
payments------------------------------------------------ 160
U.S.
exports---------------------------------------------------------
35
Gross private domestic
investment--------------------------- 180
Personal consumption
expenditures-------------------------- 600
U.S.
imports--------------------------------------------------------
45
Undistributed corporate
profits------------------------------- 15
...
In the national income accounting identity showing the equality between national saving and investment, what is...
In the national income accounting identity showing the equality
between national saving and investment, what is the representation
of private saving and what is the representation of public
saving?
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