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Macroeconomics Assignment PDF

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Added on  2020-02-24

Macroeconomics Assignment PDF

   Added on 2020-02-24

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Running head: MACROECONOMICSMACROECONOMICSName of the StudentName of the UniversityAuthors Note
Macroeconomics Assignment PDF_1
1MACROECONOMICSTable of ContentsQuestion 1........................................................................................................................................2Question 2........................................................................................................................................3Question 3........................................................................................................................................4Question 4........................................................................................................................................4References........................................................................................................................................6
Macroeconomics Assignment PDF_2
2MACROECONOMICSQuestion 1a) Private Savings refers to the total income that households save after giving taxes andpaying for total consumption. It is estimated by subtracting paid tax and consumptionexpenditure of the households from the total income or GDP. Therefore,Private savings =GDP-T-C=$20-$1-$13=$6 billionb) Public Savings signifies total tax revenue left by the respective nation’s government afterexpenditure. Therefore, it is calculated by subtracting government spending from the taxrevenue. The value obtained can be positive, negative or zero.Public Savings= T-G=$1-$3=-$2 billion.c) Public savings is considered as one of the major source of supply of loanable funds. Itrefers to the change in the budget surplus or shortfall of the government. If the government raisesbudget surplus or declines budget deficit, public savings increases. As pubic savings and supplyof loanable funds are positively related , rise in public savings shifts the supply curve to right.. d)National savings refers to the summation of both the private and public savings. National savings= T-G+Y-T-C=Y-C-G=$20-$13-$3= $4
Macroeconomics Assignment PDF_3

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