National output: $200000,Taxes: $10000,Consumption: $6000,Government Expenditures: $2000,Find Private Savings and Public Savings
Question
National output: $200000
Taxes: $10000
Consumption: $6000
Government Expenditures: $2000
Find Private Savings and Public Savings
Solution
The question is asking for the values of private savings and public savings.
Private savings can be calculated using the formula:
Private Savings = National Output - Taxes - Consumption
Substituting the given values into the formula:
Private Savings = 10000 - 184000
Public savings can be calculated using the formula:
Public Savings = Taxes - Government Expenditures
Substituting the given values into the formula:
Public Savings = 2000 = $8000
So, the private savings is 8000.
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