Supposed that in a closed economy GDP is equal to 11,000, taxes are equal to 1,500, consumption equals 7,500 and government purchases equal 2,000. What is national saving

Question

asked Sep 6, 2020 54.0k views

1 Answer

Hashim Adel · Answer 1 · 2020-09-09T15:27:27+0000

Answer: National Saving = 1500

Step-by-step explanation:

Given that,

Y (Income) = GDP = 11,000

Taxes = 1500

Consumption = 7500

Government Purchases = 2000

National saving is the sum of two components that are public savings and private savings.

National Saving = GDP - Consumption - Government Purchases

= 11000 - 7500 - 2000

= 1500

∴ The national saving in a closed economy is 1500.