Thank you for visiting In the underground city of Neverwhere GDP is 15 trillion consumption is 10 trillion government spending is 2 5 trillion taxes are 1 trillion and. 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:
The total savings for the economy of Neverwhere is calculated to be $2 trillion, based on the provided GDP, consumption, government spending, and net capital inflow figures.
Explanation:
To calculate the total savings for the economy of Neverwhere, we can use the following identity from macroeconomics: GDP = Consumption (C) + Investment (I) + Government Spending (G) + Net Exports (NX). However, given that we do not have direct figures for Investment or Net Exports, we can rearrange the equation by including net capital inflow and taxes in computing savings:
GDP = C + S + G + (NX)
where
S represents savings and (NX) represents net capital inflow, which in this case is equivalent to Net Exports because it is the amount of capital inflow minus capital outflow.
We already know that GDP = $15 trillion, C = $10 trillion, and G = $2.5 trillion. The net capital inflow has been given as $0.5 trillion. Let's use this information to find S (Savings).
Initially rearrange the identity to solve for S:
S = GDP - C - G - NX
Now plug in the values:
S = $15 trillion - $10 trillion - $2.5 trillion - $0.5 trillion
S = $2 trillion
Therefore, the total savings for the economy of Neverwhere is $2 trillion.
Thank you for reading the article In the underground city of Neverwhere GDP is 15 trillion consumption is 10 trillion government spending is 2 5 trillion taxes are 1 trillion and. 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
Answer:
$3 trillion
Explanation:
Given that,
GDP = $15 trillion
consumption = $10 trillion
Government spending = $2.5 trillion
Taxes = $1 trillion
Net capital inflow = $0.5 trillion
Investment:
= GDP - Consumption - Government spending + Net capital inflow
= $15 - $10 - $2.5 + $0.5
= $3 trillion
We know that savings is equal to investment spending.
Therefore, the total savings for the economy of Neverwhere is $3 trillion.
