Suppose That in a Closed Economy GDP Is Equal to 11,000

question 107

Multiple Choice

Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 2,500 consumption equals 7,500 and government purchases equal 2,000. What are private saving, public saving, and national saving?

• A)1,500, 1,000, and 500, respectively
• B)1,000, 500, and 1,500, respectively
• C)500, 1,500, and 1,000, respectively
• D)None of the above is correct.