Q10) Suppose that during a given year in a closed economy, GDP is $ 40,000, consumption on goods and services is $ 22,000, the amount paid in taxes is $ 10,000, inventories increased $ 2,000, and the amount spent on new business equipment was $ 2,000. What was the public saving that year?
Answer) -$4,000
Q11) Now suppose that in the following year for the economy described in the previous question (Q10), the amount spent on consumption of goods and services, taxes, inventory increases, and new business equipment were the same. Government spending is also the same. This year, however, there is also an additional $ 5,000 spent on new home construction. What is private saving?
A)$6,000
B)$8,000
C)-$8,000
D)$13,000