what is the saving of this household in this economy?

Based on the following national accounts:

Variable	Milliards $
Real GDP	50
consumer expenses	30
government expenses	12
Investment	11
Export	10
budget deficit	2

Solutions

Expert Solution

Budget deficit = $2 million

Government expenses = $12 million

Budget deficit = Government expenses - Tax revenue

$2 million = $12 million - Tax revenue

Tax revenue = $10 million

Calculate the saving by household -

Saving by household = Real GDP - Consumer expense - tax revenue

Saving by household = $50 million - $30 million - $10 million = $40 million

Thus,

The saving by this household in this economy is $10 million.

Rahul Sunny answered 1 year ago

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