Suppose that Halloween Island is totally isolated from the rest of the world but has a thriving market economy, complete with credit markets. Its currency is the broomstick, abbreviated bs. In the past year the government has collected 1000 bs as taxes, but spent 1300 bs. Total savings of the nongovernmental sector was 1300 bs. From these numbers, we can deduce that:

GDP was 3600 bs.
the rate of inflation was 300%.
the capital stock was decreasing.
investment was 1000 bs.

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