1. Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size of: a. Private Saving b. Investment c. Government Spending

1. Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size of: a. Private Saving b. Investment c. Government Spending

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Savings,investment And The Financial System

Section: Chapter Questions

Problem 4PA

See similar textbooks

Related questions

Q: The demand and supply functions for a certain product are given by p = = 0.29², and P = 13 –q, where…

A: Equilibrium is the state of the market where market forces of demand and supply are equal to each…

Q: A policy that increases saving a. will worsen economic growth, but improve health outcomes. b. will…

A: Economic growth basically refers to the expansion in the production of goods and service in an…

Q: You have £2,000 and you can only choose one of the following two investments. First, you may deposit…

A: To compare the two investment options, we have to calculate the expected returns for each.Option 1:…

Q: 4. Fischer runs a long-only equity strategy following 500 stocks per quarter, with an information…

A: Each data consists of specific information that needs to be extracted. The Fisher information is…

Q: Individual retirement accounts (IRAS) were established by the U.S. government to encourage saving.…

A: Future Value refers to the value that a certain investment scheme or alternative becomes at a…

Q: Critics of discretionary fiscal policy argue that discretionary policy : 1) has uncertain effects…

A: Since you have posted multiple independent McQs, according to our guidelines, only the first McQ is…

Q: Question 1 (40 points) Consider a homogeneous duopoly market where two firms compete in prices.…

A: The objective of the question is to determine if there is an equilibrium in pure strategies for a…

Q: 5 3 A H B D C E G D 2 6 10 12 Qua If buyers in this market have to wait in lim imposed, each buyer…

A: Price ceiling is a situation when the price charged is more than or less than the equilibrium price…

Q: What is the discount factor after 3 years if the discount rate is 6%

A: A discount factor is a number that is used to convert a future cash flow into its present value.

Q: Graph shows the cost and revenue Information for Shitotsu the monopolist. What are the levels of…

A: TR Maximization (Total Revenue Maximization):TR maximization refers to the goal of maximizing total…

Q: True-False-Uncertain. Respond to following statements as True, False, Uncertain and justify your…

A: Economic theories are composed of various concepts and principles. The theories are based on…

Q: 1. For each of the goods listed below, discuss whether the good is likely to entail an external cost…

A: In economics, an externality, also known as an external cost or external benefit, is an indirect…

Q: the personal income tax rate is 31%, the dividend income tax rate is 12% and the corporate tax rate…

A: Personal Income Tax Rate:Personal income tax is a tax levied on the income of individuals. The…

Q: 1. Debbie, a popular wedding photographer, is able to photograph a wedding every Saturday of the…

A: Economic cost refers to the cost associated or expenditure done in the doing of an economic…

Q: Consider the following graph. Suppose the economy is currently at point A. Suppose there is a…

A: "As the question number is not specified, we can provide a solution to the first question. Kindly…

Q: Given the following two mutually exclusive alternatives and using repeatability assumption, the…

A: An alternative's CW is the project or investment's total present value of all expenses and benefits.…

Q: Make graph for demand curve of: 1. When good x is normal and y is bad. 2. When good one good is…

A: A normal good is one whose consumption level increases with the rise in income. It means that the…

Q: What does a positive output gap indicate about the economy? The economy has slack, and the Central…

A: Gross Domestic Product refers to the sum of all the values of the goods and services that the people…

Q: Farmer Smith grows wheat. The average total cost and marginal cost of growing wheat for an…

A: Perfect competition is a market form with a high number of buyers and a high number of sellers.…

Q: Year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 a. 4%. 2 Percent $ 1,000 980 961 942 924…

A: The inflation rate shows how much the average cost of products and services in the economy goes up…

Q: Suppose the exchange rate is 13 pesos for $1. A Mexican family is interested in buying a home in…

A: An exchange rate refers to the value at which one currency can be converted into another currency.…

Q: 310 185 170 95 80 65 $ A profit-maximizing firm will break even when market price is $ SMC If market…

A: At the price of $310 firm is producing 1700 units of output.

Q: A firm's demand curve is Q = 2-0.01P, where Q is measured in millions. The firm's output when…

A: Demand refers to the willingness to pay for a certain good or service that is available in the…

Q: Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of…

A: This can be described as a form of market in which no single producer or consumer has the power to…

Q: The growth rate of the demand for coal in the world is 6 % per year. In what year will the demand be…

A: A technique for estimating how long it will take a variable developing at a steady pace to double is…

Q: 3. A village has six residents, each of whom has accumulated savings of $100. Each villager can use…

A: A government bond is an instrument of credit for the government, the public purchases the government…

Q: f this were an OECD economy, which had been conducting unconventional monetary policy (UMP), briefly…

A: It is mentioned in the provided question to answer only the 'D' subpart. Hence, only the specified…

Q: Where does the 404 come from?

A: a) Determine the profit-maximizing output and price. A monopolist maximizes profit by producing the…

Q: "Water is one thing we all have in common. Water issues are a common thread through most of the…

A: The type of market failure being discussed in the article is negative externality. Negative…

Q: 1. Tom International LLC has developed pessimistic, most likely, and optimis benefit data are given…

A: The Net present worth or NPW is defined as the the set or series of cash flow happening at different…

Q: The distribution of income OA) is more even in developing countries than in the Russia B) is more…

A: This can be defined as a concept that shows the continuous progress in any nation it does not happen…

Q: The following graph shows the daily demand curve for bikes in San Diego. Use the green rectangle…

A: Price Elasticity:Price elasticity computes the responsiveness of demand for a item to the change in…

Q: a) What is the firm's marginal cost when it is producing y units of output? b) Imagine that the…

A: Production function is one type of function in which all kinds of combinations of inputs are…

Q: Assume that the gross domestic product is $6,000, personal disposal income is $5, 100, the…

A: There are two types of savings that an economy experiences which include private savings where each…

Q: Question 4: A communication system consists of n components, each of which will function…

A: INTRODUCTION:In a communication system consisting of (n) components, each component operates…

Q: Which one of following statements is false? * Consider the following game. B D E F There are 7…

A: The name suggests in a game, for every step of the game, if the game experiences a Nash Equilibrium,…

Q: Refer to Figure 13-2. Ceteris paribus, an increase in the price level would be represented by a…

A: A model used in macroeconomics is the (AD/AS) model. It clarifies how an economy's price level and…

Q: Consider the figure to the right, where a consumer initially maximizes utility at…

A: Given the tastes and preferences, a rational consumer seeks to maximize the utility or satisfaction…

Q: The central bank of the Dominican Republic decides to pursue a contractionary monetary policy.…

A: Monetary policy is the set of actions taken by a central bank to control the money supply and…

Q: Consider an economy characterized by a Cobb-Douglas production function Y = Y = AK "L¹-a, with A =…

A: A production function:Is a function that shows the relationship between the input and output of the…

Q: Question 19 Price level (GDP deflator, 2009-100) 8 8 8 8 8 130 120 110 100 LAS SAS X AD 15.0 15.5…

A: Long-run equilibrium is where the LRAS curve i.e. the verticle line and the aggregate demand curve…

Q: 1. Consider a consumer with the utility function u(x, y) = 2x¹/2 + y, an income of I = Rs100, and…

A: A utility function is a concept in economics that represents an individual's preferences or…

Q: passage. Drag word(s) below to fill in the be economists believed that the economy take place…

A: A subfield of economics known as macroeconomics studies the economy as a whole at the aggregate…

Q: Provide a table with the nominal GDP for Trinidad and Tobago for 2020 and 2021. Using only the…

A: Macroeconomic analysis provides a thorough picture of an economy's financial situation. It detects…

Q: Scenario 1 Suppose that political instability in other countries makes people fear for the value of…

A: It can be defined as a concept that shows how much currency of one nation is valuable in terms of…

Q: based on the attached inflation data, which country's inflation forecast is improving the most…

A: Headline inflation is the measure of all-inclusive inflation in the country. It includes core…

Q: Discuss the importance of decentralization, in relation to eskom, on the politics of democratic…

A: Decentralization refers to the process of transferring authority, decision-making powers, or…

Q: Suppose people have rational expectations and the AD and AS curves take the following forms: AD: Y₁…

A: Aggregate demand : AD : Aggregate Supply : AS : Full Employment Level = 550 , P0 = 1 Graphs are…

Q: Everett also works in the perfectly competitive manicure industry. The market price is $20 and he…

A: In general terms, cost is the amount paid in order to acquire any resource or service. The main aim…

Q: Canada's government savings bonds pay 2.5% annual real rate of return compounded daily. Professor…

A: Annual real rate of return on savings bond= 2.5 percent compounded daily.Amount of money invested by…

Concept explainers

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.

Question

1. Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the
government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size
of:
a. Private Saving
b. Investment
c. Government Spending
d. National Savings
e. Taxes
f. Public savings

Definition Definition Income earned by a government that is not spent on current expenses, but rather saved for future investments or to pay off debts. It is the difference between government revenue and expenditures, and can be positive or negative.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define National Income:

VIEW

Step 2: Calculate Private Saving:

VIEW

Step 3: Calculate Investment:

VIEW

Step 4: Calculate Government Spending:

VIEW

Solution

VIEW

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Assume that the gross domestic product is $6,000, personal disposal income is $5,100, thegovernment deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the sizeof:a. Private Savingb. Investment c. Government Spendingd. National Savingse. Taxesf. Public savings
1. Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size of: a. Private Saving b. Investment c. Government Spending d. National Savings e. Taxes f. Public savings
Assume that the gross domestic product is $6,000, personal disposal income is $5,100, thegovernment deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the sizeof: d. National Savingse. Taxesf. Public savings
Assume the United States Personal Savings equals zero. Using national income accounting concepts, show what this might mean for U.S. private investment spending and the US trade relationship with the world. How would the United States finance its investment spending? How would the US finance its government budget, especially if it becomes a budget deficit? Show and explain
1. Consumption = 13,309 Exports = 2,316 Government purchases = 3,331 Saving = 6,607 Government budget deficit = 4,000 Imports = 2.883 %3D a. What is gross domestic product? GDP = b. What is investment? c. What is disposable income? Yd =. d. What is the level of government transfers minus taxes?
6. After a tax increase, households often reduce spending and save more. This canresult in:a. An increase in the national budget deficitb. An increase in public and private savingsc. A long-run decrease in capital accumulationd. A short-run decrease in national savings and investment, and a long-rundecrease in productivity
Suppose GDP equals $300 trillion, consumption equals $24 trillion, the government spends $3 trilNon and has a budget deficit of $500 billion. · Find public saving, taxes, private saving, national saving, and investment.
Assume that GDP is $6500, personal disposable income is $5600, and the government budget deficit is $400. Consumption is $3800, and the trade deficit is $100. Calculate the saving (S), investment (I), and government spending (G).
Aa3 a. Private saving is : $ ___Trillion b. Investment Spending is : $___Trillion c. Transfer Payments are: $___Trillion d. The government budget balance is : $ ___Trillion and as a result the government budget is in ___( deficit or surplus) Please show your work. (thumbs down for wrong answers)
2. Suppose GDP equals $09 trillion, consumption equals $3 trillion, the government spends $2.5 trillion and has a budget deficit of $450 billion. Try to find public saving, taxes, private saving, national saving, and investment.
1. Country X has following data: C = 20 + 0.8Y4, I = 30, G = 40, Tx = 20, T, = 15, X = 60, M = 20 + 0.04Y, incoming year growth target is 600, All figures is billion. Please calculate: a. National income equilibrium! b. Consumption and saving equilibrium! c. Government income from tax! d. How much change in government consumption if they want to achieve growth target?
Y d - C] equals Select one: a. the MPC. b. the MPS. c. spending. d. saving.