Question
In: Economics
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 |
what is the saving of this household in this economy?
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 2 years agoRelated Solutions
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