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question 199

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Use the following to answer questions :
Scenario: A Small Economy
Suppose there is no trade and no government in a small economy. GDP is $25 trillion, and consumption spending is $18 trillion this year.
-(Scenario: A Small Economy) Look at the scenario A Small Economy. There is a new government, and it imposes taxes on its citizens to spend on infrastructure. Taxes and government spending are both $2 trillion. What is the level of private saving now?


Definitions:

Conidium

An asexual spore that is usually formed at the tip of a specialized hypha called a conidiophore.

Basidium

The clublike spore-producing organ of basidiomycetes that bears sexual spores called basidiospores.

Ascocarps

The fruiting bodies produced by ascomycete fungi, which contain the spore-producing structures.

Mycelia

Mycelia are the vegetative parts of fungi, consisting of a network of fine, thread-like structures called hyphae.

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