←11:39A.B.C.1.Suppose that in a closed economy GDP is equal to 10,000, taxes are equal to 2,500 Consumptionequals 6,500 and Government expenditures equal 2,000. What are private saving, public saving, andnational saving?D.Document (2)O1500, 1000, 5001000, 500, 1500500, 1500, 1000None of the above are correct.2. Suppose that the reserve ratio is 5 percent and that a bank has $1,000 in deposits. Its requiredreserves areVPNA.$5. B.$50. C. $95.D.$950.3. When the government spends more, the initial effect is thatA.aggregate demand shifts right.B.aggregate demand shifts left.21.0KB/S2Gil 71goC.aggregate supply shifts right.D.aggregate supply shifts left.4.Suppose the economy is in long-run equilibrium. In a short span of time, there is a large influx ofskilled immigrants, a major new discovery of oil, and a major new technological advance in electricityproduction. In the short run, we would expectA.the price level to rise and real GDP to fall.B.the price level to fall and real GDP to rise.C.the price level and real GDP both to stay the same.D.All of the above are possible.C.These numbers are quarterly rates that have been seasonally adjusted.D. These numbers are at quarterly rates and have not been seasonally adjusted.:5. In the United States real GDP is reported each quarter.A.These numbers are adjusted to make them measure at annual and seasonally adjusted rates.B.These numbers are adjusted to make them annual rates, but no adjustment for seasonal variationsare made.

Aggregate demand is the sum of consumption , investment , government spending and net export.…

1.Suppose that in a closed economy GDP is equal to 10,000, taxes are equal to 2,500 Consumption equals 6,500 and Government expenditures equal 2,000. What are private saving, public saving, and national saving? A. B. C. D. 1500, 1000, 500 1000, 500, 1500 500, 1500, 1000 None of the above are correct.

1.Suppose that in a closed economy GDP is equal to 10,000, taxes are equal to 2,500 Consumption equals 6,500 and Government expenditures equal 2,000. What are private saving, public saving, and national saving? A. B. C. D. 1500, 1000, 500 1000, 500, 1500 500, 1500, 1000 None of the above are correct.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 2CQQ

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Similar questions

In the late 1990s, the U.S. government moved from a budget deficit to a budget surplus and the trade deficit in the U.S. economy grew substantially. Using the national saving and investment identity, what can you say about the direction in which saving on/or investment must have changed in this economy?
Imagine an economy in which Ricardian equivalence holds. This economy has a budget deficit of 50, a trade deficit of 20, private savings of 130, and investment of 100. If the budget deficit rises to 70, how are the other terms in the national saving and investment identity affected?
Explain how decreased domestic investments that occur due to a budget deficit will affect future economic growth.
Under what condition would crowding out not inhibit long-run economic growth? Under what condition would crowding out impede long-run economic growth?
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