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Answer to Question #64458 in Other Economics for Junaid Amjad

Question #64458
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?
Expert's answer
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.

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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.

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