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Question 7
Consider a closed economy. Suppose GDP is $780 million. Fill in the amount for consumption in the table:
National Income Account
Value (Millions of dollars)
Government Purchases (G)
200
Taxes minus Transfer Payments (T)
260
Consumption (C)
Blank 1
Investment (I)
280
Now, using the information in the table above, find the following 3 values (use only whole numbers in your answer, no $):
National Saving (S): Blank 2
Private Saving: Blank 3
Public Saving: Blank 4
Choose the correct answer from the two provided:
Based on your calculations, the government is running a budget Blank 5 (surplus, deficit)
7 Points