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A closed economy has income of $1,200 billion, government spending of $220 billion, taxes of $170 billion, and investment spending of $250 billion. Consumption spending is $ billion. Private saving is $ billion. Public saving is $ billion. National saving is $ billion. Enter whole numbers.

Answer :

Parrain

Answer: CONSUMPTION SPENDING = $730 Billion

PRIVATE SAVING = $300 Billion

PUBLIC SAVING = -$50 Billion

NATIONAL SAVING = $250 Billion

Explanation:

The missing figures are the Consumption Spending, Private Saving, Public saving and National Saving.

This is a closed economy so no imports.

Consumption Spending.

The Formula for GDP is

Y = C + I + G

Y is income

C is Consumption

I is Investment

G is Government Spending.

Making C the subject we have,

C = Y - I - G

= 1,200 - 220 - 250

= $730 billion

Private Saving is what people are left with after taxes and Consumption so,

= Y - T - C

= 1,200 - 170 - 730

= $300 billion

Public Saving is how much the Government spent vs what it received.

The formula would therefore be

= Taxes - Government Spending

= 170 - 220

= -$50 billion

National Saving is the amount in the Economy that was saved after accounting for Consumption and Government Spending.

= Y - C - G

= 1,200 - 730 - 220

= $250 billion

If you need any clarification do react or comment.

Tundexi

Consumption spending = $730 Billion, Private savings = $300 Billion , Public savings = -$50 Billion, National savings = $250 Billion

The Formula for GDP is Y = C + I + G where Y is income, C is Consumption, I is Investment and G is Government Spending.

  • Making C the subject we have C = Y - I - G

Consumption spending = 1,200 - 220 - 250

Consumption spending = $730 billion

  • Private Saving refers to what people are left with after taxes and Consumption.

Private Saving = Y - T - C

Private Saving = 1,200 - 170 - 730

Private Saving = $300 billion

Public Saving = Taxes - Government Spending

Public Saving = 170 - 220

Public Saving = -$50 billion

  • National Saving refers to the amount that was saved after Consumption and Government Spending.

National Saving = Y - C - G

National Saving = 1,200 - 730 - 220

National Saving = $250 billion

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