Question

Suppose real GDP is $6,178 billion, taxes collected by the government are $701 billion, government spending is $814 billion, and consumption spending is $4,366 billion. What is the value of national saving? Enter a whole number with no dollar sign and please do not include the word billion.

Answer 1

Answer:

$998 billion

Explanation:

National savings is the sum of private savings and public savings and it is also calculated by deducting consumption and government spending from gross domestic product (GDP).

National savings = Gross domestic product - consumption - Government purchases

                            = $6,178 billion - $4,366 billion - $814 billion

                             = $998 billion