Scenario 14-1 Consider the Following Data for a Closed Economy

question 116

Multiple Choice

Scenario 14-1
Consider the following data for a closed economy:
Y = $12 trillion
C = $8 trillion
I = $2 trillion
G = $2 trillion
TR = $2 trillion
T = $3 trillion
-Refer to Scenario 14-1.Based on the information above,what is the level of private saving in the economy?

• A) $3 trillion
• B) $4 trillion
• C) $5 trillion
• D) $8 trillion

---

Definitions:

Own Contract

Own contract typically refers to an agreement or promise that one has made with oneself, often not legally enforceable but acknowledging personal commitment or obligation.

Bargaining Unit

Employees joined together for the purpose of collective bargaining.

Wage Increase

An upward adjustment in employees' salaries or wages, often due to economic conditions, labor market pressures, or performance.

Union Members

Individuals who belong to a labor union, which is an organization that represents workers' interests in negotiations with employers.