You have some estimates of national accounts numbers for a closed economy for the coming year. Under one set of expectations, government purchases will be $30 billion, transfer payments will be $10 billion, and taxes will be $45 billion. Under another set of expectations, GDP will be $200 billion, taxes will be $50 billion, transfer payments will be $20 billion, consumption will be $120 million,
and investment will be $40 billion. Based on these numbers in the first case there should be a
a. $15 billion surplus, and in the second case a $10 billion surplus.
b. $15 billion surplus, and in the second case a $30 billion deficit.
c. $5 billion surplus, and in the second case a $10 billion deficit.
d. $5 billion surplus, and in the second case a $30 billion deficit.
c
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If interest rates rise by 5 percentage points, say, from 10 to 15%, bank profits (measured using gap analysis) will
A) decline by $0.5 million. B) decline by $1.5 million. C) decline by $2.5 million. D) increase by $1.5 million.
The marginal utility derived from viewing the next movie download is the
A) average utility per minute of viewing. B) additional utility from viewing the movie. C) average utility per hour of viewing. D) additional utility from viewing the first minute of the movie.