Assume the following information for an imaginary, closed economy.GDP - $100,000; taxes $22,000; government purchases - $25,000; national saving $15,000.Refer to the above Scenario. For this economy, consumption amounts to1) $68,000.O 2) $38,000.3) $53.000.4) $60.000. Assume the following information for an imaginary, closed economy.GDP - $100,000; taxes - $22,000; government purchases - $25,000; national saving = $15,000.Refer to the above Scenario. For this economy, private saving amounts to1) $22.000.2) $18.000.O 3) $15.000.4) $37,000.

ume thhe GDP - $100.000; taxes $22.000; government purchases - $25.000; national saving $15,000. Refer to the above Scenario. For this economy, consumption amounts to 1) $68.000. O 2) $38,000. 3) $53.000. 4) $60.000.

ume thhe GDP - $100.000; taxes $22.000; government purchases - $25.000; national saving $15,000. Refer to the above Scenario. For this economy, consumption amounts to 1) $68.000. O 2) $38,000. 3) $53.000. 4) $60.000.

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

Assume the following information for an imaginary, closed economy.
GDP - $100,000; taxes $22,000; government purchases - $25,000; national saving $15,000.
Refer to the above Scenario. For this economy, consumption amounts to
1) $68,000.
O 2) $38,000.
3) $53.000.
4) $60.000.

Expert Solution

Step 1

Consumption expenditure amounts to the sum total of spendings made by an individual for consumption purposes.

Public savings refers to the savings of the government, which is the excess of earnings over the spendings of the government.

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