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

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

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 3CQQ

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Question

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Answer all four parts please. Hand written not allowed

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

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Step 1: Define National Income:

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Step 2: Calculate Private Saving:

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Step 3: Calculate Investment:

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Step 4: Calculate Government Spending:

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Step 5: Calculate National Saving:

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