# 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.

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.

Need a fast expert's response?

Submit orderand get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

## Comments

Assignment Expert09.01.17, 20:00Dear visitor,

please use panel for submitting new questions

Junaid07.01.17, 11:15The 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