00:01
Here the gdp is equal to 11 ,000, taxes is equal to 1 ,000, consumption is 7 ,500, and the government purchases is equal to 2 ,000.
00:14
Now, to calculate private saving.
00:17
Private saving is equal to gdp minus consumption minus taxes.
00:23
So, for the next step, we substitute the value here, gdp that is 11 ,000, consumption that is 7 ,500, and the taxes that is 1 ,000.
00:31
So the private saving will be equal to 11 ,000 minus 7 ,500 minus 1000 and by calculating this we get the value is 2500 that's the private savings.
00:44
Now we calculate the public saving.
00:47
Public saving is equal to taxes minus government purchases.
00:52
So here for taxes is 1000 and the government purchases is 2000.
00:57
So the public saving will be equal to 1000 minus 2000 which is is equal to minus 1 ,000...