The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,540 million. Enter the amount for government purchases.National Income AccountValue(Millions of dollars)Government Purchases (GG) Taxes minus Transfer Payments (TT)455Consumption (CC)700Investment (II)490 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table.National Saving (S)National Saving (S) = = (y-t-g, g-t, y-c, y-c-g) = = (C,G,Y,I) $ ______million

Answer: Note: the format of the question is not clear. It's very confusing to guess what should be calculated. Although I am calculating the items that I can figure out. GDP=C+I+GG=GDP-I-CG=1540-490-700G=$350 million The value of government purchases is $350 million. National saving = Private saving + Public saving/government saving Private saving=Y-(Taxes-Transfer payment)-CPrivate saving=1540-455-700Private saving=$385 millionAnd,Public saving=(Taxes-Transfer payment)-GPublic saving=455-350Public saving=$105 millionSo,National saving=Private saving+Public savingNational saving=385+105National saving=$490 million The value of national savings is $490 million.

Answered: The following table contains data for a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table contains data for a hypothetical closed economy that uses the dollar as its currency.

Suppose GDP in this country is $1,540 million. Enter the amount for government purchases.

National Income Account	Value
(Millions of dollars)
Government Purchases (GG)
Taxes minus Transfer Payments (TT)	455
Consumption (CC)	700
Investment (II)	490

Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table.

National Saving (S)National Saving (S)	= =	(y-t-g, g-t, y-c, y-c-g)
	= =	(C,G,Y,I)
		$ ______million

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