Suppose that in a closed economy GDP is 11,000, consumption is 7,500, and taxes are 500. What value of government purchases would make national savings equal to 2,000 and at that value would the government have a deficit or surplus? 1,500, surplus O 1,500, deficit 1,000, surplus 1,000, deficit

Suppose that in a closed economy GDP is 11,000, consumption is 7,500, and taxes are 500. What value of government purchases would make national savings equal to 2,000 and at that value would the government have a deficit or surplus? 1,500, surplus O 1,500, deficit 1,000, surplus 1,000, deficit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose that in a closed economy GDP is 11,000, consumption is 7,500, and taxes are 500. What value of government
purchases would make national savings equal to 2,000 and at that value would the government have a deficit or surplus?
1,500, surplus
1,500, deficit
O 1,000, surplus
1,000, deficit

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National income is the total value of products and services manufactured in the country during the period.

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