00:01
So, hello, so today i'm going to answer a question about some specific application of the macroeconomic identity.
00:06
So we start with this one, that is the macroeconomic identity.
00:10
As you do calculate the private savings, for doing so first you need to calculate the total savings.
00:15
That is the amount of product that you didn't consume, you didn't consume.
00:23
So it would be, you have to subtract the consumption of the private households and the government.
00:28
This will give you the investment and investment in a close economy.
00:30
Is equal to the savings.
00:33
For differentiate between the private and the public investment, you need to add zero.
00:38
Zero as t minus t.
00:39
So in this case i add the minus three and in this case i add the t.
00:46
So as you can imagine, the private savings are the y minus the consumption of the households, minus the taxes, and the savings of the public sector is taxes minus the government expenditure.
00:59
So the private savings will be two...
