Question

The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,320 million. Enter the amount for consumption. National Income Account Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (I) Value (Millions of dollars) 300 210 270 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) = _ million Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private Saving = million Public Saving = million Based on your calculations, the government is running a budget

The drop downs for the formulas are Y C G and T and the last drop down is SURPLUS/DEFICIT

Answer 1

Answer
GDP=C+I+G
1320=C+270+300
C=1320-570
C=750 million
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National saving =Y-C-G
=1320-750-300
=270 million
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Private saving =Y-T-C
=1320-210-750
=360 million
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Public saving =T-G
=210-300
=-90 million
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Deficit

The taxes is less than govenment spending .