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Questions › IIT JAM › IIT JAM 2025 › Q59
2 marksMacroeconomics › National income accounting › Saving and investment identitiesModerateabout 2 min

IIT JAM 2025 Question 59: National income accounting

Consider the economy described by the following: Y=C+I+GY=C+I+GY=C+I+G with Y=5000Y=5000Y=5000, G=1000G=1000G=1000, T=1000T=1000T=1000, and C=250+0.75(Y−T)C=250+0.75(Y-T)C=250+0.75(Y−T), where YYY, CCC, III, GGG, and TTT are national income, private consumption spending, investment expenditure, government expenditure, and tax revenue respectively. In this economy, private saving is ________.

Answer and worked solution

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Plain-text version

Consider the economy described by the following: Y=C+I+G with Y=5000, G=1000, T=1000, and C=250+0.75(Y-T), where Y, C, I, G, and T are national income, private consumption spending, investment expenditure, government expenditure, and tax revenue respectively. In this economy, private saving is.

National income accounting has come up 132 times in 6 exams since 2010.

What this question tests

This question is on Saving and investment identities, part of National income accounting in Macroeconomics.

The accounting links between saving, investment, the government budget and the current account.

TestStop has 8 past-paper questions on this subtopic.

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