Question

Y=\$13 trillion C=\$6 trillion I=\$3 trillion TR=\$1 trillion T=\$4 trillion

Answer 1

a. Private saving: $2 trillion. b. Public saving: $0 trillion. c. Government purchases: $3 trillion. d. The government budget balance is $4 trillion, indicating a government surplus.

To calculate private saving
`S_{private`, public saving
`S_(public)`, and the government budget balance, we can use the following equations:

`S_{\text{private}} = Y - C - T S_{\text{public}} = T - G`

Government Budget Balance = T - G

Now, let's substitute the given values into these equations:

Given:

Y = $12 trillion

C = $6 trillion

I = $3 trillion

TR = $1 trillion

T = $4 trillion

`\[ S_{\text{private}} = 12 - 6 - 4 = $2 \text{ trillion} \]S_{\text{public}} = 4 - (I + TR) = 4 - (3 + 1) = $0 \text{ trillion} \] \text{Government Budget Balance} = T - G = 4 - 0 = $4 \text{ trillion} \]`

Now, let's answer each part of the question:

a. Private saving: $2 trillion.

b. Public saving: $0 trillion.

c. Government purchases: $3 trillion. (Given that G = Y - C - I)

d. The government budget balance is $4 trillion, and as a result, the government budget is in surplus.

The complete question is:

Consider the following data for a closed economy:

Y = $12 trillion

C = $6 trillion

1 = $3 trillion

TR = $1 trillion

T = $4 trillion

Use the data to calculate the following. (Enter your responses as integers.)

a. Private saving: $ ____ trillion.

b. Public saving: $ ____ trillion.

c. Government purchases: $ ____ trillion.

d. The government budget balance is $ ____ trillion and as a result, the government budget is in