For an imaginary closed economy, T = $5,000; S = $11,000; C = $48,000; and the government is running a budget surplus of $1,000 . Then
a. private saving = $10,000 and GDP = $55,000.
b. private saving = $10,000 and GDP = $63,000.
c. private saving = $12,000 and GDP = $67,000.
d. private saving = $12,000 and GDP = $69,000.
Ans: b. private saving = $10,000 and GDP = $63,000.
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