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Use the table below and national income accounting identities to calculate: (A) National Saving...

Question:

Use the table below and the national income accounting identities to calculate:

(A) National Saving (S)

(B) Private Saving

(C) Public Saving

Based on your calculations, how much budget is the government running?

National Income Account Value (Millions of dollars)
Government Purchases (G) 350
Taxes minus Transfer Payments (T) 455
Consumption (C)
Investment (I) 280

Determining Private, Public and National Saving

The levels of private, public and national saving in an economy are determined from national accounting relationships and data. Their values must be internally consistent with the values of other national accounts variables in determining an economy's equilibrium GDP.

Answer and Explanation:

(A) The following identify can be used to answer the questions posed:

{eq}\begin{align} S + T &= I + G\\ S + \$455 &= \$280 + \$350\\ S &=...

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Learn more about this topic:

How Saving & Investing Contribute to the US Economy

from Introduction to Macroeconomics: Help and Review

Chapter 17 / Lesson 4
751

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