Find GDP in closed economy.

Question

If, in a closed economy (NX=0), government expenditure is $300 billion, total household consumption is $800 billion and national savings is $100 billion then GDP is equal to:

A-$100 billion.

B-$400 billion.

C-$800 billion.

D- $1.2 trillion.

E- None of the above.

Answer 1

1 million dollars is added to the debt every minute,

we are so screed,

is 9008 billions in 2007

Answer 2

D- $1.2 trillion.

Y=C+I+G

S=I for closed economy, so Y=800+100+300=1'200