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Attempts: Average: 15 2. Saving and investment in the national income accounts The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $780 million. Enter the amount for government purchases. Value (Millions of dollars) National Income Account 260 Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (1) 300 280 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 = aving = = $ million million Public Saving =

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Answer 1

G = Y-I-C = 780-280-300 = 200

National Saving

= Y-C-G

= I

= 280

Private saving

= Y-C-T

= 780-300-260 = 220

Public saving

= T-G

= 260-200

= 60

Blank - surplus