Question

suppose that in a closed economy gdp is equal to 20,000, consumption equal to 15,000, government purchases equal 4,000, and taxes equal 3,000. what are private saving, public saving, and national saving?

Answer 1

The private saving is 2,000 ; public saving is 1,000; national saving is 3,000

Private saving=20,000-3,000-15,000

                              =2,000

Public Saving=3,000-4,000

                          =1,000

National saving=2,000+(1,000)

                        =3,000

Calculating the problem:

Private saving in a closed economy may  be calculated as follows:

Private saving = GDP - taxes- consumption

GDP=20,000

taxes=3,000

consumption=15,000

Private saving=20,000-3,000-15,000

                            =2,000

Public saving in a closed economy may be calculated as follows:

Public Saving= Taxes- government purchase

Taxes    =   3,000

Government purchases    =  4,000

Public Saving=3,000-4,000

                          =(1,000)

National saving in a closed economy may be calculated as follows:

National saving= private saving +public saving

                        =2,000+(1,000)

                       =3,000

What does closed economy mean?

A closed economy basically  refers to a country that doesn't trade or engage in other financial exchanges with some  other country. Which  means no imports comes into the country and no exports leave it.

Learn more about closed economy:

brainly.com/question/3776956

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