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from this information.
national income Y = 10,300 budget surplus Bus =110
disposable income YD = 8,600 net exports NX = -400
consumption C = 7,400

2007-03-11 10:53:40 · 1 answers · asked by cloutier1031 1 in Social Science Economics

1 answers

Ok, here we go. This is a GDP question. Total GDP is national income. It is calculated as Consumption + Investment + Government Spending + Net Exports. We have some of these answers already. So,
10,300=7400+Investment + Government- 400. We can figure out investment, because it is the difference between disposable income and consumption. So it is 1200. Plugging the figure for government spending then gives us 2100 for government spending.

Private savings is part of investment. The government surplus makes up the rest. So, S is 1310.

2007-03-12 02:39:38 · answer #1 · answered by theeconomicsguy 5 · 0 0

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