Question

Consider the following statistics on the U.S. economy for 2012 (note: some statistics are estimates based on the government budget for 2014): GDP = $16.8 trillion; Taxes = $2.8 trillion; Private saving = $3.49 trillion; Public saving = -$0.68 trillion. (Source: Wallstats, St. Louis Fed, BEA) Giving your answers in trillions, rounded to the nearest thousandth (e.g., 5.472 trillion), if our economy were closed, 1) What would consumption be? 2) What would government purchases be? 3) What would national saving be? 4) What would investment be? 5) Do these numbers lead you to believe productivity is increasing, decreasing, or neither? 6) Now, assuming we have an open economy, with imports totaling 2.27 trillion and exports totaling 1.58 trillion, What does national savings equal?

          Consider the following statistics on the U.S. economy for 2012 (note: some statistics are estimates based on the government budget for 2014): GDP = $16.8 trillion; Taxes = $2.8 trillion; Private saving = $3.49 trillion; Public saving = -$0.68 trillion. (Source: Wallstats, St. Louis Fed, BEA) Giving your answers in trillions, rounded to the nearest thousandth (e.g., 5.472 trillion), if our economy were closed, 1) What would consumption be? 2) What would government purchases be? 3) What would national saving be? 4) What would investment be? 5) Do these numbers lead you to believe productivity is increasing, decreasing, or neither? 6) Now, assuming we have an open economy, with imports totaling 2.27 trillion and exports totaling 1.58 trillion, What does national savings equal?

Added by Pamela G.

Question

Please give Ace some feedback