Thank you for visiting Suppose that there is no trade and no government in a small economy GDP is 25 trillion and consumption spending is 18 trillion this year. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
Final answer:
In a basic economic model without government or foreign sector, private savings can be calculated as the difference between GDP and consumption. So, based on the data provided in the question, the level of private savings in this scenario is $7 trillion.
Explanation:
The subject of this question is placed in the realms of Economics specifically, macroeconomics. The level of private savings in an economy can be determined by subtracting the total consumption from the Gross Domestic Product (GDP). In the context of the student's question where GDP is $25 trillion and consumption spending is $18 trillion, private savings would equate to the difference. That is, $25 trillion (GDP) - $18 trillion (consumption spending) yields $7 trillion (private savings). Therefore, based on the given data, the level of private savings in the economy is $7 trillion.
Learn more about Private Savings here:
https://brainly.com/question/34556105
#SPJ11
Thank you for reading the article Suppose that there is no trade and no government in a small economy GDP is 25 trillion and consumption spending is 18 trillion this year. We hope the information provided is useful and helps you understand this topic better. Feel free to explore more helpful content on our website!
- You are operating a recreational vessel less than 39 4 feet long on federally controlled waters Which of the following is a legal sound device
- Which step should a food worker complete to prevent cross contact when preparing and serving an allergen free meal A Clean and sanitize all surfaces
- For one month Siera calculated her hometown s average high temperature in degrees Fahrenheit She wants to convert that temperature from degrees Fahrenheit to degrees
Rewritten by : Jeany
