Use the saving and investment identities from the National Income Accounts (Y = C + I + G + NX, with a closed economy) to answer the following questions.
Y = 4,000
C = 2,000
National Savings = 1,200
Public Saving = (-400)
Does this country possess a budget deficit or budget surplus? And, what is the $ value of the budget deficit or budget surplus?
a. Budget deficit of -400
b. Budget deficit 1200
c. Budget surplus of -800
d. Budget surplus of 1600