ECO403 ASSIGNMENT NO. 1 SPRING 2023 (PART-C) || 100% RIGHT SOLUTION || MACROECONOMICS || BY VuTech
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The Case:
PART-C
Suppose the Consumption expenditures, Government expenditures, and Gross Domestic Product (GDP) in the economy of Pakistan for the years 2011 and 2010 are given below. Complete the missing values by using the information given in the table.
Items (Rs.) | Year-2011 | Year- 2010 |
Consumption (C) | 10,000 | 70,000 |
Government expenditures (G) | 30,000 | 20,000 |
Gross Domestic Product (GDP) = Y= Total output | 70,000 | 50,000 |
National saving | ??? | ??? |
Solution
To find the missing values for national saving in 2011 and 2010, we can use the following equation:
National Saving = GDP - Consumption - Government Expenditures
Using the given data, we can calculate the national saving for each year:
For 2011:
National Saving = 70,000 - 10,000 - 30,000
= 30,000
For 2010:
National Saving = 50,000 - 70,000 - 20,000
= -40,000
Therefore, the national saving for 2011 is 30,000 Rs., and for 2010, it is -40,000 Rs. (indicating a negative saving, which means there is a dissaving or deficit in the economy).