Suppose that in a closed economy, GDP is $15 trillion, Consumption is $6 trillion, Government Purchases are $5 trillion, and there is a $500 billion budget deficit. 6. What are taxes? 7. What is public saving? 8. What is private saving?

Q: a. Private saving is : $ ___Trillion   b. Investment Spending is : $___Trillion   c. Transfer…

A: In closed economy, there is neither export not import.  At equilibrium,  Y = C + I + G  National…

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A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

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A:

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 3.Draw a graph representing a hypothetical economy. Carefully label the two axes, the S + T + IM…

A: Since you have not mentioned which question you require an answer for, as per our standard procedure…

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Q: None

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Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.