For the next three questions, consider a closed economy with the following information: Economic investment = $6000 Private savings = $4100 Output (income) = $20,000 Consumption = $11,000 This economy has no transfer payments; in other words, total taxes and "net taxes" are the same thing. calculate this economy's government purchases (G). calculate this economy's public savings. calculate this economy's taxes (T). Note that there are no transfer payments.
For the next three questions, consider a closed economy with the following information: Economic investment = $6000 Private savings = $4100 Output (income) = $20,000 Consumption = $11,000 This economy has no transfer payments; in other words, total taxes and "net taxes" are the same thing. calculate this economy's government purchases (G). calculate this economy's public savings. calculate this economy's taxes (T). Note that there are no transfer payments.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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For the next three questions, consider a closed economy with the following information:
- Economic investment = $6000
- Private savings = $4100
- Output (income) = $20,000
- Consumption = $11,000
This economy has no transfer payments; in other words, total taxes and "net taxes" are the same thing.
calculate this economy's government purchases (G).
calculate this economy's
calculate this economy's taxes (T). Note that there are no transfer payments.
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