Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › IIT JAM › IIT JAM 2026 › Q58
2 marksMacroeconomics › National income accounting › Saving and investment identitiesHardabout 3 min

IIT JAM 2026 Question 58: National income accounting

Y=C(Yd)+I(r)+G+NX(ϵ)Y=C(Y_d)+I(r)+G+NX(\epsilon)Y=C(Yd​)+I(r)+G+NX(ϵ); Yd=Y−TY_d=Y-TYd​=Y−T. Given Y=5000Y=5000Y=5000, G=1000G=1000G=1000, T=1000T=1000T=1000, C=250+0.75YdC=250+0.75Y_dC=250+0.75Yd​, I=1000−50rI=1000-50rI=1000−50r, NX=500−500ϵNX=500-500\epsilonNX=500−500ϵ, and r=5r=5r=5. If GGG decreases to 750, then the national savings increase by ________ (in integer).

Answer and worked solution

Checking your account…

Plain-text version

Y=C(Y_d)+I(r)+G+NX(ϵ); Y_d=Y-T. Given Y=5000, G=1000, T=1000, C=250+0.75Y_d, I=1000-50r, NX=500-500ϵ, and r=5. If G decreases to 750, then the national savings increase by (*in integer*).

Also written as: Y=C(Y_d)+I(r)+G+NX(epsilon); Y_d=Y-T. Given Y=5000, G=1000, T=1000, C=250+0.75Y_d, I=1000-50r, NX=500-500epsilon, and r=5. If G decreases to 750, then the national savings increase by (*in integer*).

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.

Take this paper as a timed mockMore on Saving and investment identities

Similar questions from other papers

  • CUET-PG 2026 · Q10Which one of the following is not a principal macro-economic goal?
  • CUET-PG 2025 · Q8Which of the following is excluded from headline inflation to arrive at core inflation?
  • GATE 2025 · Q34Which of the following statements is/are CORRECT in the context of National Income Accounting?
  • IIT JAM 2025 · Q7If a Japanese citizen owns an apartment in India, then the rental income that she earns from that apartment is part of.
  • UGC-NET 2025 · Q19Given GNP at market price Rs. 14400 crores, consumption Rs. 12000 crores, government purchases Rs. 1200 crores, exports Rs. 1000 crores and imports Rs. 1500 crores, the…

Question from the IIT JAM 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.