00:01
So here we're going to do some macro accounting.
00:02
We know that income is equal to 120 ,000.
00:06
We know that consumption is equal to 70 ,000.
00:09
We know that savings is equal to 9 ,000.
00:13
We know that national savings, which is savings plus the government savings, right? so s is private savings, and then the government savings is the amount the government raises in taxes over and above what the government is spending.
00:29
So this national savings is equal to 12.
00:32
Now, we want to figure out what taxes are.
00:35
So we know that a closed economy means that there is no trade, right? this doesn't exist.
00:45
If there's no trade, you have y is equal to c plus i plus g, right? because what i need to find here is t.
00:54
T is the object of our desire.
00:56
We know s, but we don't actually know what g is...