Assume that GDP is Rs. 6000, personal disposable income is Rs. 5100 & the Govt. Budget Deficit is Rs. 200, consumption is Rs. 3800 & trade deficit Rs. 1000. Calculate saving, investment & government spending?
1
Expert's answer
2017-01-10T09:37:14-0500
Y = Rs. 6000, Yd = Rs. 5100, BD = 200, C = Rs. 3800, NX = -1000. Saving S = Yd - C = 5100 - 3800 = Rs. 1300, Y = C + I + G + NX, Government spending G = T + BD, T = Y - Yd = 6000 - 5100 = 900, so G = 900 + 200 = Rs. 1100. Investment I = Y - C - G - NX = 6000 - 3800 - 1100 + 1000 = Rs. 2100.
Learn more about our help with Assignments: Economics
Comments
Assignment Expert
09.01.17, 20:00
Dear visitor, please use panel for submitting new questions
Junaid
07.01.17, 11:15
The following is the information from the national income accounts for
a hypothetical country: GDP Rs. 6000.00 Gross Investment 800.00 Net
Investment 200.00 Consumption 4000.00 Govt. purchases of goods &
services 1100.00 Govt. Budget Surplus 30.00 What is a) NDP b) Net
exports c) Govt. taxes minus transfers c) Disposable personal income
e) Personal Saving.
Leave a comment
Thank you! Your comments have been successfully added. However, they need to be checked by the moderator before being published.
Comments
Dear visitor, please use panel for submitting new questions
The following is the information from the national income accounts for a hypothetical country: GDP Rs. 6000.00 Gross Investment 800.00 Net Investment 200.00 Consumption 4000.00 Govt. purchases of goods & services 1100.00 Govt. Budget Surplus 30.00 What is a) NDP b) Net exports c) Govt. taxes minus transfers c) Disposable personal income e) Personal Saving.
Leave a comment