Suppose GDP is $800 billion, taxes are $150 billion, private saving is $50 billion, and public...

Suppose GDP is $800 billion, taxes are $150 billion, private saving is $50 billion, and public saving is $20 billion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment.

Expert Solution

Rahul Sunny answered 2 years ago

Suppose GDP is €5 trillion, taxes are €1.5 million, private saving is €0.5 trillion and public...

Suppose GDP is €5 trillion, taxes are €1.5 million, private saving is €0.5 trillion and public saving is €0.2 trillion. Assuming the economy is closed, calculate consumption, government purchases, national saving and investment.

suppose private saving in a closed economy is $12 billion and investment is $10 billion. Which...

suppose private saving in a closed economy is $12 billion and investment is $10 billion. Which of the following are true? A. national saving must equal $12 billion B. public saving must equal $2 billion C. Government budget surplus must equal $2 billion D. Government budget deficit must equal $ 2 billion

Suppose that this year’s velocity is 10, nominal GDP (PY) is $50 billion, and real GDP...

Suppose that this year’s velocity is 10, nominal GDP (PY) is $50 billion, and real GDP (Y) is $10billion (a) What is the price level and money supply? Please show all calculations for full credit (b) Suppose that velocity constant and the economy’s output of goods and services (Y) decreased by 5 percent. What will be the new price and new nominal GDP if the Fed increases the money supply by 5%? (c) Suppose that velocity constant and the economy’s output...

Suppose GDP is $12 trillion, taxes are $3.6 trillion, privatesaving is $1.5 trillion, and public...

Suppose GDP is $12 trillion, taxes are $3.6 trillion, private saving is $1.5 trillion, and public saving is $0.8 trillion.Assuming the economy is closed, complete the following table by calculating consumption, government purchases, national saving, and investment.Componentamount(trillions of dollars)consumptiongovernment purchasesnational savingsinvestment

Question 1 Distinguish between private saving, public saving, and national saving. ( 3 marks) Explain the...

Question 1 Distinguish between private saving, public saving, and national saving. ( 3 marks) Explain the impact of an increase in the government budget surplus on private saving, public saving, and national saving. Suppose that in a closed economy the GDP is equal to $11,000, Taxes are equal to $2,500, Consumption equals $7,000, and Government purchases equal $3,000. Calculate private saving, public saving, and national saving?

Suppose that investment is $160 billion, saving is $140 billion, government expenditure on goods and services...

Suppose that investment is $160 billion, saving is $140 billion, government expenditure on goods and services is $150 billion, exports are $200 billion, and imports are $250 billion. Is the government's budget exerting a positive or negative impact on investment? The government budget balance is a deficit or surplus, which is exerting a positive or negative impact on investment. It decreases or increases the demand for loanable funds, which _______ the real interest rate and ________ investment. A. lowers;...

If at a given real interest rate desired national saving is $150 billion, domestic investment is...

If at a given real interest rate desired national saving is $150 billion, domestic investment is $90 billion, and net capital outflow is $70 billion, then a. the real interest rate will rise and net exports will fall. b. the real interest rate will fall and net exports will fall. c. the real interest rate will fall and net exports will rise. d. the real interest rate will rise and net exports will rise.

) Suppose that this year’s money supply is $400 billion, nominal GDP is $1200 billion (or...

) Suppose that this year’s money supply is $400 billion, nominal GDP is $1200 billion (or $1.2 trillion), and real GDP is $1000 billion. a. What is the price level? What is the velocity of money? b. Suppose that the velocity is constant and the economy’s output of goods and services rises by 5%. If the Fed keeps the money supply constant, what will happen to the price level? c. Suppose again that velocity is constant and the economy’s output...

Suppose that in year 1 nominal GDP for a country is $5,200 billion. The GDP price...

Suppose that in year 1 nominal GDP for a country is $5,200 billion. The GDP price index is 114.9, and the population is 100 million. In year 1, the real wage averages $18 per hour and workers work 35 hours per week. In year 2, this country's nominal GDP is $5,800 billion. The GDP price index is 115.1, and the population is now 105 million. Assume that in year 2 the real wage averages $18 per hour and workers work...

Suppose country A has a GDP of $10 billion and country B has a GDP of...

Suppose country A has a GDP of $10 billion and country B has a GDP of $2 billion. If we assume that there are only two countries A and B in the world and that the coefficient of B can be approximated by the inverse of the world GDP, approximately what volume of trade is predicted to occur between the two countries if they are both 500 miles apart and our uncertainty parameter is given by 1.5. Suppose instead that...

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